Laura Sharman 12 September 2018

Councils urged to offer staff low interest loans

Councils urged to offer staff low interest loans image

Local authorities should offer staff low interest loans that could be paid back through their payroll system, according to a new report by ResPublica.

The report, published by the think tank, reveals that poor credit ratings are disproportionally concentrated in the most deprived communities. Blackpool has the worst credit score in the UK at just 312.54, with 143 local authority districts having a credit score below the median of 353.

It calls on local authorities to take a place-based approach to improving the credit scores of their residents and initiate salary-linked lending schemes.

It found that moving just 5% of the UK’s current consumer debt from the most expensive loans to salary-linked lending would reduce debt servicing costs by around £2bn.

Phillip Blond, director of ResPublica, said: ‘Traditional high street banks have reigned in lending to those on low and middle incomes. What this means is when a personal crisis happens, those with little or no money are forced to turn to unscrupulous companies, who use grossly inflated interest rates, with an APR as high as 1,200%.

‘We describe the phenomenon as the poverty premium, where those who are least able to pay are charged eye-watering interest rates for credit.’

SIGN UP
For your free daily news bulletin
Highways jobs

Senior Project Manager

Leicestershire County Council
Up to £50,823 per annum
The role of this post is to oversee the project management, development and implementation of the County Council’s Major Transport Projects.. Leicestershire
Recuriter: Leicestershire County Council

Programme and Change Delivery Manager (Spatial Planning and Urban Design)

London Borough of Richmond upon Thames and London Borough of Wandsworth
£43,833 - £53,115 Depending on skills and experience
Are you a change delivery manager with expertise in England’s local government spatial planning and urban design sector? Wandsworth, London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Early Years Practitioner

The Royal Borough of Kensington & Chelsea Council
£26,544 - £30,618 per annum pro rata
This is a diverse area and we have high aspirations for all our children, starting with... Kensington and Chelsea, London (Greater)
Recuriter: The Royal Borough of Kensington & Chelsea Council

Programme Manager - Association of Directors of Children’s Services

City of York Council
£50,000 to £60,000 pa
This role will help to shape an annual SLI work plan and variously oversee, facilitate, commission or directly deliver and... York, North Yorkshire
Recuriter: City of York Council

School Wellbeing Worker

City of York Council
£27,614 to £30,602 per annum
The role will involve providing schools with consultation and advice, training, direct work in... York, North Yorkshire
Recuriter: City of York Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue