Greensill collapse sparks fears for pay scheme used by cash-strapped NHS nurses

The future of a Greensill subsidiary that provides financial help to NHS nurses impoverished by the Covid pandemic has been thrown into question by its scandal-struck parent company’s collapse.

Earnd is a Covent Garden fintech firm that offered clients’ staff the ability to access their wages before payday.

Like David Cameron at Greensill, former Home Secretary Lord (David)Blunkett, pictured, was installed as a famous paid adviser.

Greensill, which provided the funds to pay Earnd clients’ staff, collapsed into administration last week but Earnd is still operating and has not been put into administration.

However, there are doubts about how the service, currently being used by three NHS trusts, can continue being financed.

Four Greensill directors on the Earnd board quit last week. At the same time, Greensill founder Lex Greensill joined as a director to help the administrators.

Earnd provided the NHS service for free and was about to ramp up hugely this year before Greensill’s collapse.

The NHS’s corporate services provider, NHS SBS, arranged the contract with Greensill and Earnd, launching it last year.

It is now scrambling to create a contingency plan to keep the service going.

The NHS has already had to step in to pay pharmacies which used Greensill’s faster payment services.

However, it is not clear who would cover the Earnd payments.

An NHS SBS spokesman said: “In the event that Earnd is unable to continue to provide a service, NHS SBS will help these organisations find an alternative early payment solution for their employees, should they wish.”

There is some doubt over who would take on that contract given the financial sector’s post-Greensill wariness of such activities.

Administrator Grant Thornton did not comment on Earnd but tech industry sources said the adminstrator may find a buyer for the business.

It is believed Lex Greensill has offered to fund personally any costs that would be borne by nurses from his empire’s collapse. Accounts at Companies House show Greensill bought Earnd in 2019. It was originally called Freeup Finance.