According to the latest statistics from payday loan company CashLady, 1.4 million Britons have joined the poorest 10% in Britain. The new shocking figures indicate a 95.2% increase (since 2015) in the number of Britons aged 65 years and above relying on loans to boost their monthly pension.
Hard-up pensioners have increased their borrowing by £157 (from; £1,478 to £1,635). The latest statistics show that this age group is now borrowing approximately £400 in payday loans (now dubbed Grey Day Loans) monthly to survive.
For the first time in Britain, charities have warned of the disproportionate number of seniors seeking financial aid for subsistence purposes. A record 1.4 million pensioners have joined the poorest 10% in Britain. Only 1 million pensioners were part of this statistic in 2015.
The statistics indicate a 26% rise in the number of loans requested despite a 10% increase in monthly income for pensioners. This shows that the average pensioner is struggling to cope with the increasing cost of living. In just two years (2015 to 2017), the average loan amount requested has risen from £302 to £382.
According to the MD of CashLady Chris Hackett, the figures show there is an increasing number of seniors struggling to get by solely on their pension. According to Hackett, inflation levels are primarily to blame. Inflation has reached a historic high. Although pensions have increased, there is still a growing shortfall between the cost of living and pension income.
Personal Finance Society statistics
This new data follows a recent report released by the Personal Finance Society showing that the poorest pensioners receive 75% of their pension income from the state pension. The Personal Finance Society report shows that millions of seniors in Britain are about to become entirely reliant on the £7,000 per year basic state pension for survival. Numerous charities have come forward urging the UK government to do more to support the elderly who are struggling.
According to Caroline Abrahams, Age UK Charity Director, the UK is at risk of assuming all elderly persons are living comfortably when that isn’t the case. The recent pensioner poverty statistics clearly show that elderly pensioners are at risk once again.
According to Abrahams, surviving in Britain on a low income/wages is hard enough for individuals in any age bracket but extremely stressful for older persons, especially those living on their own and struggling buy food and pay utility bills.
Abrahams believes the State Pension is more important now, more than ever as a tool for fighting against pensioner poverty. She is however of the thought that there is more help for those in dire need. For instance, elderly pensioners can claim benefits they are entitled to. This can make a great difference according to Abrahams given the fact that a record £3.8 billion in benefits goes unclaimed by elderly people every year in Britain. Before seeking alternative income such as taking out payday loans to pay for utility bills or buy essential goods and services, elderly pensioners are advised to exhaust their cash benefits.
Age UK is one of UK’s top charities which helps elderly pensioners get unclaimed benefits. Before pensioners become so desperate to the extent of seeking help to pay for essentials and insolvency costs, they should consider contacting charities like Age UK.
Turn2Us is another charity that offers similar help. The national organisation helps the needy/poor access charitable grants and welfare benefits among other types of financial help. A statement from Turn2Us shows that there is an increasing number of female pensioners seeking Turn2Us’ help.
Many pensioners in the UK don’t get the government assistance they are entitled to like Winter Fuel Payment and Pension Credit. This is because many people have been able to live all their lives without needing these benefits before so they only naturally consider credit which is readily available whenever they need help.
In an interview with The Mirror, Pritie Billimoria, Head of Communications at Turn2Us stated that; most people who have been comfortable most of their lives risk being financially week after retirement. According to Billimoria, struggling financially when you are older can be very distressing which is why elderly pensioners need all the support they are entitled to.
Age UK offers FREE financial advice and help to elderly persons with financial problems. Contact 0800 169 6565. Website: www.ageuk.org.uk.
Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.