£500,000 boost for not-for-profit lender

A NOT-FOR-PROFIT lender is to expand its services in Scotland thanks to a £500,000 investment.

Fair For You, which specialises in providing loans to buy essential items, says the cash will enable it to provide 3000 more loans a year for the next 10 years.

It has already loaned more than £1.7 million to Scots, with about 6,000 people taking out a loan.

The £500,000 investment comes

will require renewed action by government, employers, landlords and providers of key goods and services.”

The report went on: “The Scottish Government has made some progress towards loosening poverty’s grip, but has not taken the decisive steps needed to make the transformational change required for Scotland’s children.”

JRF said Scottish ministers need to be “clear on and accountable for how existing and new economic and labour market strategies align with its commitment to tackle child poverty, and to track this over time to learn from triumphs and mistakes”. from the Affordable Credit Loan Fund, which was set up by the Carnegie UK Trust and backed by the Scottish Government.

Carnegie UK Trust chair Sir John Elvidge said such organisations could be a more affordable alternative to pay day lenders.

It is estimated that around 150,000 people in Scotland borrow £250 million from high cost lenders, such as pay day loan firms and

Child poverty across Scotland fell in the late 1990s and early 2000s, but the report added that since 2010 that trend had been reversed “mainly due to UK Government-imposed social security cuts”.

Of the 230,000 children living in poverty, 90,000 were in a family where someone – usually an adult – is disabled or has a medical condition that limits what they can do.

Meanwhile, 30,000 youngsters were living in a family where one adult – usually the mother – was not in work, with a further 30,000 children in single parent households also affected. doorstep lenders every year.

Sir John stated: “The poverty premium means that people who can least afford to borrow money usually pay the most to do so.

“Our Affordable Credit Loan Fund and national action group are seeking to bring new solutions to the affordable credit debate, with a focus on identifying sustainable, not-forprofit alternatives to the commercial high cost credit market.”

Just over 15,000 children of lone parents who worked part-time were in poverty, as were almost 15,000 children of couples where one worked full time and the other worked part-time, the report added.

Forthcoming strategies from the Scottish Government, to help more disabled people into employment and to close the gender pay gap, “could make a crucial difference for our society”, it continued.

The report stressed: “For employment to become a more reliable route out of poverty, further action on flexible work and childcare is needed.”