New fintech Wollit announces it is bringing forward the launch of its income smoothing product to help those hit hardest by the COVID-19 pandemic protect themselves from future income shocks.
Wollit will allow customers with irregular incomes, such as gig workers and those on zero-hour contracts, to benefit from its Income Promise – giving them access to a stable income each month even if their hours or earnings fluctuate. Customers can sign up now, and be the first to benefit when the service launches in May.
Wollit provides customers an interest-free cash top up whenever they earn less than their Income Promise. The top-ups are repaid in months customers earn more than their income Promise. A £9.99 fixed monthly fee is the only cost to customers.
Gig workers – which make up 10% of the working population – are set to be hardest hit by loss of work and earnings as a result of the COVID-19 pandemic. With many earning as little as £8.25 per hour, they are less likely to have savings to fall back on during periods of no income and face waits of up to five weeks to claim Universal Credit.
Liad Shababo, CEO of Wollit commented: “While we welcome the support measures announced for the self-employed, we need to consider how quickly this money will become accessible and what happens to those who have only recently become self-employed to ensure they don’t fall through the gap. This population of the workforce has an insecure income and often lives hand to mouth, and many are worried they will soon be unable to pay basic living costs. Maybe more importantly, we need to think about survival long-term and thinking about how we can remove stress beyond three months.
“In response to the financial insecurity brought about by COVID-19 we are working to speed up the launch of our income smoothing product, the Wollit Income Promise. Bringing forward the launch of Wollit will enable many self-employed workers to protect themselves from future shocks, giving them long term consistent support and stability after the current government support measures come to end.”