Business leaders are urged by CloudPay to offer flexible pay solutions to support employees during the UK’s escalating debt issues.
- Over 12.8 million UK citizens are currently struggling with late bill payments, marking a significant increase in financial stress since 2017.
- CloudPay recommends the implementation of earned wage access (EWA) models to assist employees facing monetary challenges.
- Borja Perez highlights the dual benefits of EWA in easing financial strain and improving employee morale and mental wellbeing.
- Employers are encouraged to adopt broader support measures, acknowledging that flexible pay alone won’t solve the financial crisis.
In light of a rising debt crisis in the UK, where over 12.8 million citizens are struggling to meet bill payments, CloudPay has made an urgent call for business leaders to implement flexible pay solutions. This plea is especially pertinent given the data from the current Debt Awareness Campaign, which illustrates a staggering increase in financial stress compared to data from 2017.
The adoption of earned wage access (EWA) models is strongly recommended by CloudPay as a vital step for businesses. Employees could gain immediate access to their accrued earnings, offering them much-needed flexibility to manage their finances effectively. Such an approach would help in preventing employees from resorting to loans or falling into deeper debt to cover unexpected expenses.
Borja Perez, VP Payments, Products at CloudPay, underscored the importance of this initiative, stating, “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.” He added that improved access to wages could significantly enhance employee morale and mental health, making it an investment in overall workforce stability.
Despite the clear advantages of EWA, CloudPay acknowledges that this model is not a panacea for the financial woes of the UK population. Perez emphasised the necessity for employers to look beyond just payment flexibility. A comprehensive package of support measures should be considered to address the multifaceted challenges facing employees, ensuring holistic wellbeing and financial security.
Flexible pay solutions, while beneficial, must be part of a broader strategy to effectively support employees during the UK’s debt crisis.
