Nurse payment app goes bankrupt after finance company David Cameron lobbied for bankruptcy
- Earnd, a free alternative to payday loans for nurses on a tight budget, went out of business
- The app was bought a little over a year ago by Greensill Capital, which has collapsed
- Former British Prime Minister David Cameron previously lobbied for the company
- The company’s founder, Lex Greensill, who had a business card in Downing Street, said last year that the app was his way of helping NHS workers fight Covid-19.
- Earnd had entered into agreements with ten NHS trusts to allow staff to receive pay before payday
An app that gives thousands of NHS employees early access to their paychecks has gone bankrupt following the collapse of the financial firm David Cameron had lobbied for.
Earnd, a free alternative to payday loans for nursing shortages, was bought by Greensill Capital just over a year ago.
Company founder Lex Greensill, who had a business card in Downing Street when he was an adviser to Mr. Cameron, said last year that the app was his way of supporting NHS employees in the fight against Covid-19.
Greensill Capital founder Lex Greensill (pictured right), who had a business card in Downing Street when he was an adviser to Mr. Cameron (left), said last year that the app was his way of supporting NHS workers fighting against COVID-19.
The former prime minister is said to have lobbied the Australian government on wage payment services on behalf of Greensill.
But now Earnd’s UK arm has gone into administration in the wake of Greensill’s collapse last month.
It means 30 layoffs at the offices in central London. Earnd had entered into agreements with ten NHS trusts to allow staff to receive payday pay at no cost.
It comes after Labor calculated that Greensill may have made up to £ 19 million in a separate NHS deal to pay pharmacies early.
Shadow Chancellor Anneliese Dodds said, “It is tragic that Greensill’s collapse is now leading to job losses.”
A spokesperson for Grant Thornton administrators said: ‘The company, a subsidiary of Greensill Capital Management Company (UK) Ltd (under administration), offered an on-demand and prepayment schedule for employees of registered organizations, including certain NHS Trusts.
Pictured: The Apple App Store page for the Earnd app, a free alternative to payday loans for low-budget nurses. It was bought by Greensill Capital just over a year ago
Upon their appointment, the Joint Administrators completed a transaction with Wagestream, which acquired some of the company’s UK assets. The Joint Administrators ensure the orderly winding up of the remaining activities.
“Unfortunately, the circumstances of the administration have resulted in the majority (30) of the company’s employees being laid off as part of this process, and a small number have been retained to assist in the administrative process for a short period of time.”