News

12.09.18

Councils urged to provide place-based credit building and salary-linked loans

A new report has urged local authorities and all other public-sector employers to offers their employees salary-linked loans and saving systems to boost financial literacy and end “punitive” borrowing costs.

The think tank, ResPublica, also argues that this could boost the credit ratings of those in the most disadvantaged communities, as poor credit ratings are disproportionately more common in more deprived areas.

The report, ‘Credit Emancipation: How salary-linked lending can help turn around disadvantaged places,’ received praise from Guy Opperman MP, minister for pensions and financial inclusion.

He said: “We have already brought forward a range of proposals, from auto-enrolment to the Single Financial Guidance Body. But ResPublica’s report unveils an exciting and interesting new set of ideas to lessen debt and the cost of debt.”

According to the report, improving the aggregate credit score of a local authority, from the bottom 10% to the middle of the credit score distribution, would improve median weekly earnings by £36, increase employment by three percentage points and increase home ownership by 6% points.

Opperman added: “ResPublica’s argument for salary-linked lending to become the norm across both the public and private sector is an important contribution to the debt reduction debate and one that I will be discussing with ministerial colleagues.

“I will be interested to see if the public sector – whether locally or nationally – can play its part in exploring, and piloting, the possible benefits and practicalities of developing a system of salary-linked lending for the UK’s civil servants.”

Phillip Blond, director of ResPublica, said that given the government wage restraints on the public sector, “finding other ways to support hard pressed workers is common sense.”

He added: “Across government, some 5.5 million people are employed, many of whom are on low incomes. Offering all of these people access to affordable credit will improve workforce retention and productivity. It will also help to put another nail in the coffin of predatory companies.”

Top image: georgeclerk

 

Enjoying PSE? Subscribe here to receive our weekly news updates or click here to receive a copy of the magazine!

Comments

There are no comments. Why not be the first?

Add your comment

 

public sector executive tv

more videos >

latest news

View all News

comment

Crown Commercial Service: Travel solutions on track

10/09/2018Crown Commercial Service: Travel solutions on track

Katrina Williams, head of travel at the Crown Commercial Service (CCS), exp... more >
LEPs need to do more for England's countryside

10/09/2018LEPs need to do more for England's countryside

Paul Miner, head of strategic plans and devolution at the Campaign to Prote... more >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this feeling of imminent change than the article James Palmer, mayor of Cambridgeshire and Peterborough, has penned for us on p28. In it, he highlights... read more >

last word

The importance of openness after Grenfell

The importance of openness after Grenfell

Following the recent Grenfell Tower tragedy, Lord Porter, chairman of the LGA, argues that if the public are going to have faith in the safety testing process then everything must be out in the open more > more last word articles >

interviews

Michael King: Time for Ombudsman reform

06/08/2018Michael King: Time for Ombudsman reform

Michael King first joined the Local Government Ombudsman service back in 20... more >

the raven's daily blog

Social value: what is it and why?

14/09/2018Social value: what is it and why?

Ben Carpenter, chief executive of Social Value UK, discusses the worth of social value, and argues that, before we start measuring social value, we should ask clearly: what is... more >
read more blog posts from 'the raven' >

public sector events

events calendar

back

September 2018

forward
mon tue wed thu fri sat sun
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
1 2 3 4 5 6 7

featured articles

View all News