[UK] Tesco offers pay advances to help workers meet debt deadlines

The UK’s largest retailer, Tesco, is offering pay advances to its workforce to help them manage debt deadlines as the cost of living crisis mounts, Sky News reports.

Tesco said that 280,000 workers in the UK can receive up to 25 per cent of their contractual pay early under the scheme.

The intention is to help staff avoid taking on expensive debt with high-interest payments, such as payday loans, in order to meet their bills.

However they would have to pay a £1.49 fee per advance to Tesco's employee benefits partner Salary Finance, to receive an advance, the company said.

Staff are reportedly allowed one advance per pay period.

Major supermarket chains have awarded several pay rises to their workers this year, as the cost of living crisis took hold.

Tesco's latest increase, for hourly-paid staff, was announced in October.

Combined, they equated to an 8 per cent increase over the year but the ONS reportedly revealed earlier this week that the rate of inflation was running at a 41-year high of 11.1 per cent.

On November 17, the Office for Budget Responsibility warned, alongside the chancellor's autumn statement, that a record hit to living standards has now begun with household disposable income unlikely to recover their pre-Ukraine war level until 2028.

A tight labour market is reportedly forcing firms to provide better pay deals to help retain staff at a time when vacancies are tough to fill.

James Goodman - Tesco's UK people director - said of the pay advance scheme, "We hope this helps to support colleagues, particularly in the run-up to Christmas."

Source: Sky News

(Quotes via original reporting)

The UK’s largest retailer, Tesco, is offering pay advances to its workforce to help them manage debt deadlines as the cost of living crisis mounts, Sky News reports.

Tesco said that 280,000 workers in the UK can receive up to 25 per cent of their contractual pay early under the scheme.

The intention is to help staff avoid taking on expensive debt with high-interest payments, such as payday loans, in order to meet their bills.

However they would have to pay a £1.49 fee per advance to Tesco's employee benefits partner Salary Finance, to receive an advance, the company said.

Staff are reportedly allowed one advance per pay period.

Major supermarket chains have awarded several pay rises to their workers this year, as the cost of living crisis took hold.

Tesco's latest increase, for hourly-paid staff, was announced in October.

Combined, they equated to an 8 per cent increase over the year but the ONS reportedly revealed earlier this week that the rate of inflation was running at a 41-year high of 11.1 per cent.

On November 17, the Office for Budget Responsibility warned, alongside the chancellor's autumn statement, that a record hit to living standards has now begun with household disposable income unlikely to recover their pre-Ukraine war level until 2028.

A tight labour market is reportedly forcing firms to provide better pay deals to help retain staff at a time when vacancies are tough to fill.

James Goodman - Tesco's UK people director - said of the pay advance scheme, "We hope this helps to support colleagues, particularly in the run-up to Christmas."

Source: Sky News

(Quotes via original reporting)