Tesco is offering staff upfront advances to stave off the need for payday loans in the mounting cost of living crisis.
Around 280,000 staff will be able to get up to 25% of their contractual pay early in the scheme, unveiled by the supermarket this week.
The advance comes at a set fee of £1.49 and would help colleagues avoid expensive debt with high interest payments, it said.
Staff will be able to apply online for an agreed percentage of their pay, and the money will be paid to them within 24 hours. The amount will be automatically repaid at the next pay day, and they will be allowed to take one advance per pay period.
Tesco trialled the scheme with more than 6,000 workers last year across Liverpool. Just over half of participants in the trial used the option to deal with an unexpected expense, the supermarket said.
“We know colleagues can face unexpected bills, such as car repairs or replacing a washing machine, which can leave them short,” said James Goodman, UK people director at Tesco.
“To give them a helping hand with their financial wellbeing, we have launched Pay Advance to give them a simple and low cost way to access some of the money that they have already earned. We hope this helps to support colleagues, particularly in the run up to Christmas.”
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