It also "...charges staff a fixed fee of £1.75 each time they make a withdrawal." As against £0.00 if they withdraw from their bank. Ok, it's cheaper than payday loans, but in truth it changes nothing over time, except to add another little burden to the most cash-strapped people in our society. While further enriching whoever's behind Wagestream. Definitely a good idea for them.
I think this is an important distinction. It is money already earned but not yet paid.There is an difference here, an payday loan give you access to money you do not have at that moment, while this system just gives you money you already earned earlier.
There are safeguards in place. The total amount that can be taken out is 30% of the monthly wage and the account can only be accessed three times a month.But i think the main issue is people need to learn how to budget, so that an unexpected expense is very annoying but not more than that, instead of an reason to borrow to fill a gap that should'nt be there.
I have a novel idea. Why not pay more people weekly, even in cash, if they want it. I seem to remember this used to work quite well before most people were forced to go monthly for the convenience of their employers.
Higher wages? More hours? Staying part of a larger open economy with the possibility of moving elsewhere in search of better work?Most are on £8.75 an hr for 25 hrs a week.
Sadly low pay high rent)= trouble.
Its just a matter of when that happens not if.
Cant see a solution
Some people would do better if they budgeted.But i think the main issue is people need to learn how to budget, so that an unexpected expense is very annoying but not more than that, instead of an reason to borrow to fill a gap that should'nt be there.
I understand the thought, but the sort of people who are stuck in low paid/low hours work in the UK, who struggle to make their money last to the next payday, who couldn't see the benefits of the EU trickling down to them, don't see that possibility applying to them.