National Debt Week: Business leaders urged to support staff with flexible pay processes
As the tenth annual National Debt Week campaign kicks off, specialist global payroll provider, CloudPay, has urged business leaders to utilise flexible pay processes to help workers struggling during the UK’s debt crisis.
Data cited by the campaign reveals that more than 12.8 million UK citizens are falling behind on bills, or finding repayments a heavy burden, an increase of over two-thirds since 2017. According to CloudPay, greater adoption of earned wage access (EWA) models would enable businesses to help their staff during financial difficulty.
Borja Perez, VP Products, Payments at CloudPay, explained:
“Granting access to accrued earnings, as and when it is needed, will help employees deal with growing financial burdens brought on by rising inflation and the cost-of-living crisis. Not only will this ease some of the monetary struggles of the workforce, but it will also boost morale and bolster staff mental wellbeing.
“The latest statistics are worrying, and with one in five people in the UK struggling with major debt issues, it’s clear that these problems won’t be resolved quickly without the support of employers. Adopting EWA gives workers extra flexibility to use their finances as and when they are needed which can help prevent them from inadvertently falling into debt or taking out loans to tackle bills or unexpected, emergency payments.”
“Of course, this is a significant challenge for the UK’s population and flexible payment models alone won’t solve everything. Employers also need to consider their responsibilities and look to support their employees’ wellness in other ways through a broader package of measures which includes EWA options.”
