Open Letter

Following a recent article in The Guardian, we wanted to directly share our perspective with you. The conversation about financial wellbeing is one of the most important in the UK today, and we believe it deserves a full and nuanced discussion.

Wagestream was founded with a clear mission: to tackle the ‘poverty premium’ – the extra cost that low and middle-income workers often pay for essential goods and services. This can take many forms, from more expensive insurance premiums to higher-cost credit, and it affects millions of people. Our goal has always been to provide fair, simple, and effective tools that give people more control over their finances. Our mission is written into our Articles of Association as a binding principle of what we do.

While we applaud the journalists’ efforts to shine a light on financial injustice, unfortunately they got two important facts wrong.

Firstly, Earned Wage Access (EWA) is not a form of consumer credit or debt. It allows employees to access a portion of the wages they have already worked and earned. The Financial Conduct Authority (FCA) concluded that EWA is not a form of consumer credit in 2020 [1], a position reinforced in the Woolard Review in 2021 [2]. This distinction is vital, as it means there is no lending and no impact on an individual's credit score – removing barriers for those who need flexible access to their own money.

Secondly, Workplace Loans are nothing like payday lending. Our regulated, fair loans are subject to robust affordability checks, are designed in collaboration with social impact organisations, and have a representative APR of 13.9-19.9% (depending on employer). The top reasons our members use our loans are for home improvement, car expenses, and debt consolidation. Prior to Wagestream, our members were paying an average APR of 62% [3]; on average, members save £593 with each Workplace Loan.

We’re proud of the impact both these products are having. Three million people access our platform through their employer. 82% of our members feel less stressed about money after using Wagestream [4]. We have reduced the UK poverty premium by over £150 million since we began in 2018 [5].

And we’re just getting started. We will continue to introduce new tools and services when the needs of our members aren’t being met. As always, we will build these tools in collaboration with employers, charities, and regulators. 

Our mission is, and remains, fair financial tools for the everyday worker.

Peter and Portman

Co-Founders, Wagestream
Monday, 01 September, 2025