by Stella Creasy MP

Some facts are already depressingly familiar: the spending review will put half a million public sector workers out of a job; another half a million people in the private sector are expected to be fired as the economy slows.  Measures which support family incomes – whether tax credits, child benefit or the child trust fund and the savings gateway – are being stripped away. It is the perfect storm that occurs when liberal and conservative dogma are combined: a government imposing draconian cuts with one hand and taking away mechanisms to help people stay afloat with the other.

Here’s a consequence of the budget less widely publicised: the (loan) sharks are now circling Britain’s poorest families, watching them struggle financially and sensing a business opportunity. Indeed, the dishonestly named Peter Crook, chief executive of Provident, is delighted with the turn in events. It is no coincidence that following the comprehensive spending review his company’s share price rocketed by 5%. Provident offers short-term credit with a typical APR of 272% to those for whom banks and credit cards are out of reach – mainly women, the low paid and those with poor credit histories. It is a company that makes money by locking people into cycles of debt, interest on debt, late payment charges and interest on late payment charges. (more…)