Government’s ‘Eat Out to Help Out’ Scheme Resulted in an Immediate 41% Spike in Loan Applications, A Report Found

- by Sarah Connelly
EOTHO Press release lead image

A report by found that payday loan applications spiked by 41% on the 3rd August 2020, the day the government Eat Out to Help Out scheme began.

LONDON, UNITED KINGDOM, December 8, 2021 / — On the 8th July 2020, the UK government announced an ‘Eat Out to Help Out’ scheme, where customers could get a 50% discount to eat at restaurants that registered with the government scheme. The project officially started to operate on the 3rd August 2020 and ended on the 31st August 2020 – with the system being active every Monday, Tuesday and Wednesday during these dates. Restaurant owners and other business owners in the hospitality industry praised the initiative at the time and said it helped boost business.

But what about consumers? Cashfloat, a London-based direct lender that specialises in loans for bad credit, published a report last week titled ‘Who Borrowed Payday Loans During the Coronavirus Pandemic’, which analysed payday loan applications received during the first year of the pandemic.

Compared to the day before, it found that payday loan applications spiked 41% on the first day of the ‘Eat Out to Help Out’ scheme. This could suggest that people wanted to borrow money to take advantage of the scheme, where they otherwise wouldn’t have. The full report is available on Cashfloat’s website here.

Sarah Connelly, an analyst and writer for Cashfloat, commented:

“For people who couldn’t otherwise afford the luxury of dining out, a 50% discount is too good an offer to pass up. Yes, the scheme helped business owners out, but what about the people that wanted to borrow expensive loans so they could afford a 50% discount? Payday loans are really expensive, and shouldn’t be used for something like eating out in a restaurant. That’s why Cashfloat asks for the ‘Loan purpose’ in our application form, and we only approve a loan request if the answer meets our lending criteria.”

The findings in the report were collated from first-hand data captured through and its affiliate websites. It analyses just under a quarter of a million payday loan applications submitted during the first year of the pandemic, from 1st March 2020 until 28th February 2021.

The report contains an analysis of how the number of applications for payday loans changed during the pandemic. It also includes the demographics of payday loan applicants during this period, including their age, gender, relationship status, location, jobs, salaries and more.

For exclusive statistics from Cashfloat or to request a custom report, you can contact Cashfloat’s team at We hope you found this release interesting. If you end up using any of the information in this release, please provide a link to

Do you know someone who could benefit from this article?
About The Author
Sarah Connelly
Sarah is an enthusiastic writer, blogger and an eager agent of change. After completing her degree in Computer Science in one of London’s esteemed universities, Sarah’s early career in programming left her creatively frustrated. Looked for a way to combine her creative and analytical side, Sarah’s search led her to Digital Marketing and now she writes content and code for Cashfloat. Sarah enjoys spreading awareness about common financial issues and the importance of money management. With her STEM background, Sarah believes strongly in ethical business management and consumer protection. in her free time, Sarah enjoys reading, watching movies and eating out. After all, #YOLO!
Need money today? Apply now for our fast payday loans.
Blog disclaimer

We do all we can to bring you interesting, practical and valuable information. However, please understand the following:

Information and data on this blog are for information purposes only. While we work hard to ensure it is accurate, we cannot accept responsibility for the accuracy, completeness, suitability or validity of any information provided on the blog. We will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use. All information is provided with no warranties and confers no rights.

If you feel that any of the information published on our blog is not accurate, please notify us via email at

Bottom content

Cashfloat is a trading style of Western Circle Limited - Company Registration Number: 7581337. We are fully authorised and regulated by The Financial Conduct Authority. FCA full permission license: 714479. ICO Registration Number: Z3305234

* Cashfloat terms and conditions apply. Applicants must be 18 or over. All loans are subject to affordability, applicant verification and traditional credit checks via various national databases by Cashfloat responsible lending policy. In most cases, loan decisions may take up to 30 minutes during office working hours. If your bank does not support Faster Payments, funds will be sent to your account the same day as approval so long as you’re approved by 16:30.

*Money will funded to your bank within 1 hour of approval - Mon-Fri during working hours.

Representative example: Borrow £700 for 6 months. 1st monthly repayment of £168.45, 4 monthly repayments of £224.60, last monthly repayment of £112.20. Total repayment £1,179.05. Interest rate p.a. (fixed) 185.39%. Representative APR 611.74% Our APR includes all applicable fees. Daily interest is capped at 0.793%.

Warning: Late repayment can cause you serious money problems. For help, go to