Home care firm joins payroll saving scheme to support staff managing their money

Carewatch (Mid Shropshire) has entered into a payroll savings scheme after the company lost an estimated £1,500 in unpaid loans to staff members last year.

The Fairshare payroll savings scheme allows staff members to save a small amount of their monthly wages to manage their money better and avoid the risk of having to turn to high interest loan sharks.

Carewatch (Mid Shropshire) signed up to the scheme after the company estimated loss £1,500 in unpaid loans given to staff as pay advances over the last year.

The home care agency currently employs 75 staff and offers a range of care services to vulnerable adults, older people and children throughout the Shropshire area.

Managing director, Steve Harris said: “We have been operating for more than 14 years and over the years I have happily given staff an advance on their wages for things like when their cars break down, Christmas presents, or it could even be £30 for a tank of petrol when it gets to the end of the month.

“I would say about one third of staff approach us for an advance on their wages each year.

“We have always provided the loans on faith but twice in the last two years people have started to pay us back and then left the company, without any contact details, so we cannot chase them for it. “Once it was about £500 and once about £900.”

Mr Harris wants the new scheme, run by FAIRshare Credit Union, to help staff members be able to have access to small loans which they have contributed to over a period of time.

All staff members can access the scheme and are able to choose how much money they contribute to their dedicated savings account each month.

He added: “By joining the FAIRshare payroll savings scheme, our employees can save on a regular basis and access low cost loans, it acts like a bank for them.

“We don’t want them to go to loan sharks like the ones that have been in the news recently, where you borrow £100 but end up paying back about £800.

“And we didn’t want to be in the position where we couldn’t offer anything.

“This way it could be a couple of pounds each month that they put away and hopefully it can help them manage their money better instead of living hand to mouth.”

Andrea Broady, marketing and business development officer at FAIRshare Credit Union said: “We are a not for profit community bank and this scheme gives those who save on a regular basis access to low cost affordable loans.

“Membership of FAIRshare is open to anyone who lives, works or studies in Shropshire or those that work for a Shropshire based company.

“We have payroll saving set up with a number of Shropshire companies including Telford College of Arts and Technology and the Wrekin Housing Trust.

“We are really pleased that Carewatch (Mid Shropshire) is offering payroll savings to their staff and hope it will be a benefit to everyone involved.

She added: “Since the Archbishop of Canterbury called for action against pay day loan companies we have definitely seen an increased awareness of Credit Unions and the valuable services they offer.”

FAIRshare in Shropshire has 5,000 members and is the county’s largest credit union.