Bar staff made most short-term loan applications in lockdown
The data shows bar staff and restaurant workers top the list for short-term loan requests ahead of construction employees followed by NHS staff and health workers.
The data, which has been released shortly ahead of National Hospitality Day on Saturday, 18 September, shows the average short-term loan amount borrowed by staff in the hospitality sector was £1,532.
Financial hit
Loans comparison website Little-Loans.com said given the restrictions placed on the hospitality industry during lockdown, it should come as no surprise staff in this sector have been hit financially.
Greater London, West Midlands and Lancashire topped the list of regional applications for such loans.
A spokesperson for Little-Loans.com said: “It’s interesting to see the professions that have made the most applications for payday loans this year have been staff within industries that have been heavily impacted by Covid-19 restrictions and lockdowns. So, it is understandable that staff within these industries may need additional financial support.
“The average loan amount for customers this year has been £1,531. Short-term loans allow customers with poor credit scores to gain access to small sums of cash quickly, for things like household emergencies, such as boiler repairs or car breakdowns. They should not be used for unnecessary spending, such as holiday purchases.”
Employers affected too
Of course, it wasn’t just staff at pubs who were in need of loans during the pandemic, thousands of pubs were reliant on bailouts from their pubcos and the government, often through the Coronavirus Business Interruption Loan Scheme (CBILS).
Scottish brewer and retailer BrewDog secured a £25m CBILS late last year while Red Oak Taverns, which took control of nine pubs from Hall & Woodhouse this week received a £2.5m loan in July 2020.
Meanwhile, Stonegate, the UK’s largest pub company, was forced to use £70m in state benefits as it recorded a £746m loss during the pandemic.
