Wagestream - good or bad idea?

swee'pea99

Legendary Member
https://www.bbc.co.uk/news/business-48630388

On the one hand it can smooth employee's cash flows but on the other it panders to the must have it now mentality.
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.
 

dutchguylivingintheuk

Senior Member
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. 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.
 

stowie

Legendary Member
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.
I think this is an important distinction. It is money already earned but not yet paid.

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.
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.

There are many, many people that simply have very little, if any, money left to save after the basics of living. People can be in this situation even if they are on far better than minimum wage if they live in a high cost area of the country, so it is perfectly possible that someone could be frugal but end up short of money due to unforseen circumstances. A big problem at the moment is that many people simply have very little disposable income to save in the first place.

When I started work full-time weekly payments were not unusual at all. This may have changed as companies consolidate payroll - I am always surprised that even quite casual agency work is often paid monthly instead of weekly these days.
 

Levo-Lon

Guru
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.


Cash is expensive
Would you want to go to a bank every week and draw thousands of pounds in cash then walk back to the car? Perfect werkly routine for a robbery

Not to mention the traval time to find a fekin bank.

My wifes company has a £170k monthly wadges bill
 
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Levo-Lon

Guru
I know in my industry a weekly pay packet would be very acceptable.

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 in our buy it now pay later credit society.
 

Bromptonaut

Rohan Man
Location
Bugbrooke UK
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.
Some people would do better if they budgeted.

Many, many more simply cannot 'put something aside for a rainy day' because there's nothing to put aside. How ever good the budgeting once they've paid the rent, the council tax, the gas, leccy and food and the costs of getting to work there's nothing left. Some unexpected expense like a washing machine going pop or a car needing a couple of tyres and they've nothing to fall back on.

Millions are just a few missed shifts from unable to pay rent. A change of circumstances that moves them from legacy Tax Credits to Universal Credit means that even if they don't lose out in cash terms weekly payments are replaced by monthly with a five week wait. Advances are payable but need to be repaid witihn a year.

'People need to budget' was part of Iain Duncan Smith's patronising rationale for the way in which UC is paid. I have personally refused, on principle, to get involved with projects to teach budgeting to UC claimants; I cannot do it and remain honest with myself.
 
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Higher wages? More hours? Staying part of a larger open economy with the possibility of moving elsewhere in search of better work?

Just a thought...
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.
 
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