More healthcare workers using short-term loans

This blog has been edited on 6th February 2023 to better reflect our company policy in relation to care workers.

With the cost of living continuing to rise and wages failing to keep up, more and more healthcare workers are using short-term loans to meet unexpected costs.

Healthcare workers in the UK play a vital role in delivering high-quality healthcare services to the population. They are the backbone of the National Health Service (NHS), providing essential services in hospitals, clinics, and communities across the country. The COVID-19 pandemic has highlighted the importance of healthcare workers and their role in protecting public health.

The NHS employs over 1.5 million people, including doctors, nurses, midwives, paramedics, and other healthcare professionals. They work tirelessly to provide medical care to patients, and their skills and expertise are crucial in ensuring that people receive the best possible treatment.

Moneyboat saw a 39% increase in healthcare workers applying for our loans between the 1st and 24th December last year. This suggests that nurses, carers and others describing themselves as healthcare workers, are finding it increasingly difficult to rely on their wages to meet unforeseen expenses. Short term loans are designed to help people get through financial emergencies, but are not to be used as a first choice or regular source of credit.

Inflation Vs. wages

The latest figures on inflation Vs wages show that inflation stood at 10.7% in November, reflecting the ever-rising costs of basics like food and utilities. Meanwhile, new data from the Office for National Statistics (ONS) shows private sector wages grew by 7.2% between September and November 2022, while public sector wages grew by just 3.3%.

For those employed in either sector, wages fell in real terms, but the difference between private and public sector wage increases is clear for all to see.

Responsible lending

A lot has changed in the short-term loans industry in general, over recent years. The vast majority of operators also respond quickly to changes in affordability and prioritise successful outcomes for customers who need to take out a loan.

Moneyboat only provides loans to those who are in full-time employment and meet our minimum eligibility requirements. Still, it seems that more and more of our valued nurses and carers can no longer rely on their wages to cover unexpected costs to cover the basics.

Some healthcare workers are turning to food banks

For most of these struggling healthcare workers, short-term loans aren’t a realistic option as regulated lenders don’t provide loans to people in this financially vulnerable position. Although they may be able to help some struggling public sector workers with one-off emergency costs, short-term loans are not available for any long-term use.

For those who are regularly struggling to make ends meet, more suitable solutions may be available. For example, financial well-being apps allow workers to control how and when they are paid. Nurses can ‘borrow’ funds from future wage packets, which gives them more flexibility, turning to friends or family for support or speaking to local charities.

The Royal College of Nursing (RCN) says “When you have essential costs to meet, payday can seem a long way off”. The RCN website provides some ideas for struggling nurses who need help to make ends meet.