# Employers and the Government should support employees’ dependency on high-cost credit, says Neyber
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2018-06-02
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: How FCA Crackdown on High-Cost Credit Will Help UK
Meta Description: Learn how Neyber is addressing the issue of high-cost credit in the UK, and promoting financial education to create a financially inclusive environment.
URL: https://financedigest.com/employers-and-the-government-should-support-employees-dependency-on-high-cost-credit-says-neyberhtml

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According to Neyber, the [Financial Conduct Authority’s announcement](http://www.bbc.co.uk/news/business-44307663) that it will crack down on high-cost credit can’t come soon enough. The FCA reports that high cost credit is used by three million people in the UK.

**Monica Kalia, Co-Founder of Neyber and Trustee of StepChange Debt Charity, said:**

“Unsecured debt per household is reaching a record high of £13,900 in 2017 according to the Trades Union Congress (TUC) **_._**  Indeed, the Money Advice Service reports that six in ten working age people are currently struggling to get on top of their monthly budgeting and financial commitments, and StepChange have cited 3 million people in the UK behind on household bills. There’s a risk that a [lack of access to affordable credit could push more vulnerable households into problem](https://www.financedigest.com/the-problem-with-current-anti-money-laundering-processes-a-lack-of-context.html "The problem with current Anti-Money Laundering processes: A lack of context") debt.

**Neyber says that two actions are essential:**

- Employers and the Government [need](https://www.financedigest.com/global-crises-that-need-the-finance-industry.html "Global Crises That Need The Finance Industry") to work together to create a more financially inclusive environment. People should have access to a range of financial capability tools and be able to arrange fairer [lending products](https://www.financedigest.com/u-s-markets-regulator-takes-aim-at-coinbase-lending-product.html "U.S. markets regulator takes aim at Coinbase lending product") as standard.
- Children should be taught in schools how to manage budgets and the importance of [credit scores](https://www.financedigest.com/how-to-raise-my-credit-score-40-points-fast.html "How to raise my credit score 40 points fast"), at a minimum.

**Kalia summarised:**

“There is no doubt this is a step in the right direction, we have long argued for the suppression of high cost credit. In our work with UK businesses, we regularly [see cases where employees have used forms of short-term borrowing at high interest rates to](https://www.financedigest.com/key-fed-official-sees-rates-liftoff-in-2023-as-policy-debate-heats-up.html "Key Fed official sees rates liftoff in 2023 as policy debate heats up") meet essential day-to-day needs. This [leads to debt spiraling out of control](https://www.financedigest.com/hospital-acquired-infection-control-market-global-leading-companies-analysis-revenue-trends-and-forecasts-2027.html "Hospital Acquired Infection Control Market Global Leading Companies Analysis, Revenue, Trends and Forecasts 2027") and life can seem to be unmanageable. The Government needs to look creatively at working with businesses to provide low- and no-interest [loans and education as to how to use credit](https://www.financedigest.com/4-ways-to-get-a-bad-credit-loan.html "4 Ways to Get a Bad Credit Loan") safely.

To find out more about Neyber, please visit [www.neyber.co.uk](http://www.neyber.co.uk).


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