School staff taking out payday loans ‘because of wage freeze’

Members of the ATL will vote today on lobbying the Government to increase financial regulation for payday loan companies because, they say, increasing numbers of staff are suffering from “in-work poverty” and turning to high-interest payday loan companies like Wonga and Purple Payday. This is from the Evening Standard…

Members of the Association of Teachers and Lecturers union will vote Tuesday on lobbying the Government to increase financial regulation for such companies.

Niamh Sweeney, a secondary school teacher at Parkside Federation in Cambridge, said: “Teachers are intelligent people who are under pressure. This is in-work poverty.

“We are paying bills, pension and student loans and there is nothing left at the end of the month.” She wants the ATL to investigate the impact of high-interest loans on teachers “in a climate of wage freezes and high inflation”. “These are people who have got good jobs and an income, but are living on the edge,” she said.

She said a fellow teacher had broken down in tears over a high-interest loan. She said: “She had got herself into this situation and didn’t know how to get out of it. She took one loan, then her washing machine broke and she borrowed some more.”

Russell Hamblin-Boone, chief executive of the Consumer Finance Association, which represents some payday lenders but not Wonga or Purple Payday, said: “We would welcome any insight from an investigation into the specific financial challenges being faced by teachers.”

More at:  School staff taking out payday loans ‘because of wage freeze’

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