Public sector staff turning to loans

PUBLIC sector workers are increasingly turning to pay day loans to make ends meet following the recent squeeze on the cost of living.

A new poll by loans broker Readies.co.uk revealed that 43 per cent of visitors to its website had already taken five or more pay day loans out in the past year alone, as they grapple with a sharp rise in everyday prices and slowing wage growth. Of those in employment seeking a loan, the highest number (27 per cent) work within the public sector in jobs such as nursing, teaching and local councils.

The figures further highlight the pressure on the “just-about-managing”, after official data last week showed the squeeze on wages has intensified.

Average wages grew by just 2.1 per cent in the year to April, down by 0.2 per cent on the previous month, according to the Office for National Statistics.

In real terms, average pay was higher in January 2006 than it is now, according to ONS analysis.

Stephanie Cole, operations manager at Readies, said pay day loans are now “part and parcel of some people’s’ lives”, as households find themselves under increasing strain.