95% RISE IN OAPS SEEKING PAYDAY LOANS
THE number of hard-up pensioners applying for payday loans to help make ends meet has surged by 95% since 2015.
Figures show the average loan amount needed to top up monthly pensions rose by 20% in the same period, up £80 to £382.
It comes despite the average monthly income of older people applying for the cash – dubbed greyday loans – rising 10%, from £1,478 to £1,635.
And as many as 1.4 million pensioners are now among the poorest 10% of the population, up from a million in 2015. The findings suggest OAP income is struggling to keep pace with the rising cost of living. Chris Hackett, MD of CashLady, which released the data, said: “These figures suggest there are more older people struggling to make ends meet.”
CashLady did not reveal the exact number of OAPs now seeking loans, due to commercial sensitivities, but it is in the thousands. It follows a Personal Finance Society report that said millions of OAPs are almost totally reliant on a basic £7,000 a year state pension. For the poorest, £3 in every £4 of income comes from it.
Age UK’s Caroline Abrahams said: “The state pension has never been more important in the fight against poverty. However, claiming the benefits you’re entitled to could make a huge difference.” As much as £3.8billion in benefits, like pension credit and winter fuel payments, remains unclaimed every year. And Turn2Us, which helps the needy get aid, said a disproportionate number of female OAPs now seek help. The charity’s Pritie Billimoria said: “It’s crucial pensioners get support they are eligible for.” Call Age UK free on 0800 169 6565 or visit ageuk.org.uk.