This Council notes:-

The rising cost of living and falling incomes is causing genuine problems to people with their finances. This has become much worse in the last eighteen months, due to the pandemic. More and more people are falling into debt due to zero hours contracts, and then going to the likes of payday loans etc. Those who borrow from high-cost credit companies, on average borrow £326 per month. The interest paid on this money is punishing rates of up to 5,800% APR . Many are unable to make the repayments and are pushed into a spiral of debt.

We all know that the long-term solution to the problem of pay day loans, must be to increase wages and control the cost of living, so that people are not forced into their arms. In the short term more needs to be done to give our residents more information about other ways to access credit unions and debt agencies.

Credit Unions offer a sustainable alternative to high-cost short term credit and should be supported by this council. As someone who used to sit on the board of a credit union, I have seen at first-hand how much they can help people who might be struggling with their finances. South Manchester Credit Union and Voyager Alliance Credit Union are just two in Manchester. Credit unions are open to all and are beneficial to all.

This Council resolves:-

(1)      To block access to payday loan websites through any council-controlled IT systems, including libraries and staff computers.

(2)      Where access has been blocked, to display information about pay plan (www.payplan.com) and other free local debt counselling services, and contacts for local credit unions, such as South Manchester CU.

(3)      To promote local credit unions by working with council and external organizations to, for example give cheaper bus tickets to local CU members.

(4)      To restrict the growth of payday loans companies on high streets, using an article 4 direction to take back control of planning permission for conversions of general shops and offices into payday loan shops.

Proposed by Councillor Hughes, seconded by Councillor Clay and also signed (via email) by Councillors Akbar, Azra Ali, Farrell, Kamal, Reid and Wheeler.

Motion proposed and seconded:

This Council notes:-

The rising cost of living and falling incomes is causing genuine problems to people with their finances. This has become much worse in the last eighteen months, due to the pandemic. More and more people are falling into debt due to zero hours contracts, and then going to the likes of payday loans etc. Those who borrow from high-cost credit companies, on average borrow £326 per month. The interest paid on this money is punishing rates of up to 5,800% APR. Many are unable to make the repayments and are pushed into a spiral of debt. We all know that the long-term solution to the problem of pay day loans, must be to increase wages and control the cost of living, so that people are not forced into their arms. In the short term more needs to be done to give our residents more information about other ways to access credit unions and debt agencies. Credit Unions offer a sustainable alternative to high-cost short term credit and should be supported by this council. As someone who used to sit on the board of a credit union, I have seen at first-hand how much they can help people who might be struggling with their finances. South Manchester Credit Union and Voyager Alliance Credit Union are just two in Manchester. Credit unions are open to all and are beneficial to all.

This Council resolves:-

(1) To block access to payday loan websites through any council-controlled IT systems, including libraries and staff computers.

(2) Where access has been blocked, to display information about pay plan (www.payplan.com) and other free local debt counselling services, and contacts for local credit unions, such as South Manchester CU.

(3) To promote local credit unions by working with council and external organizations to, for example give cheaper bus tickets to local CU members.

(4) To recommend to the Executive to restrict the growth of payday loans companies on high streets, using an article 4 direction to take back control of planning permission for conversions of general shops and offices into payday loan shops.

Resolution

The motion was put to Council and voted on and the Lord Mayor declared that is was carried unanimously.

Decision

This Council notes:-

The rising cost of living and falling incomes is causing genuine problems to people with their finances. This has become much worse in the last eighteen months, due to the pandemic. More and more people are falling into debt due to zero hours contracts, and then going to the likes of payday loans etc. Those who borrow from high-cost credit companies, on average borrow £326 per month. The interest paid on this money is punishing rates of up to 5,800% APR. Many are unable to make the repayments and are pushed into a spiral of debt. We all know that the long-term solution to the problem of pay day loans, must be to increase wages and control the cost of living, so that people are not forced into their arms. In the short term more needs to be done to give our residents more information about other ways to access credit unions and debt agencies. Credit Unions offer a sustainable alternative to high-cost short term credit and should be supported by this council. As someone who used to sit on the board of a credit union, I have seen at first-hand how much they can help people who might be struggling with their finances. South Manchester Credit Union and Voyager Alliance Credit Union are just two in Manchester. Credit unions are open to all and are beneficial to all.

This Council resolves:-

(1) To block access to payday loan websites through any council-controlled IT systems, including libraries and staff computers.

(2) Where access has been blocked, to display information about pay plan (www.payplan.com) and other free local debt counselling services, and contacts for local credit unions, such as South Manchester CU.

(3) To promote local credit unions by working with council and external organizations to, for example give cheaper bus tickets to local CU members.

(4) To recommend to the Executive to restrict the growth of payday loans companies on high streets, using an article 4 direction to take back control of planning permission for conversions of general shops and offices into payday loan shops.