Tesco launches pay advance scheme to help staff meet debt deadlines

The retail giant said workers can now receive up to 25% of their pay early under the scheme, which aims to help staff avoid taking on expensive debt with high-interest payments, such as payday loans, in order to meet their bills.

Workers need to pay a £1.49 fee to receive the advance and are only allowed one per pay period.

The store said that its 280,000 employees across the UK will be able to apply online and money will arrive in their account within 24 hours.

Tesco’s UK people director James Goodman said in a statement: “We know that colleagues can face unexpected bills such as car repairs or replacing a washing machine, which can leave them short.

“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.”

Last month, Tesco announced a second pay rise this year for hourly-paid staff by nearly 8% over the year.

From 13 November, the basic hourly rate of pay in Tesco stores increased by 20p to £10.30 (or £10.98 in London).

However, the retailer’s store managers, who earn about £30,000 a year, say they have received as little as a 3% pay rise.

Inflation is currently sitting at at 11.1%, a 41-year high.