Laura Sharman 12 September 2018

Councils urged to offer staff low interest loans

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

PRINCIPAL TRANSPORT PLANNING OFFICER

Hull City Council
£43693 - £46731
We have an exciting opportunity for an experienced professional to join our team in Hull as a Principal Transport Planning Officer. Kingston upon Hull, East Riding of Yorkshire
Recuriter: Hull City Council

HIGHWAYS AND TRAFFIC ENGINEER - 4 POSTS

Hull City Council
£43693 - £46731
We have several exciting opportunities for suitably qualified Highways Civil Engineers and Traffic Engineers Wilson Centre, 1st floor, Hull HU1 2AG
Recuriter: Hull City Council

Strategic Director, Finance and Resources (S.151 Officer)

Blackburn with Darwen Borough Council
£110,799 - £120,706
Blackburn with Darwen is a distinctive, welcoming and vibrant borough with a strong identity and a genuine buzz about the place. Blackburn, Lancashire
Recuriter: Blackburn with Darwen Borough Council

Residential Worker, Edge of Care Service

Durham County Council
Grade 7 £29,093 - £32,654 PAY AWARD PENDING
Join a Groundbreaking Team Supporting Families in Seaham Salary
Recuriter: Durham County Council

Bikeability Cycling Instructor

Durham County Council
Grade 4 £24,790 to £25,992 pro rata (Pay Award Pending)
The Road Safety Team are keen to recruit additional Casual Bikability Instructors to join our team of instructors delivering Bikeability cycle trainin Durham
Recuriter: Durham County Council
Linkedin Banner