Oh no, poor Paddy! Unfortunately without seeing him in person, I can't say for certain if this is something relatively minor. A rash in cats could be caused by an infection (bacteria or yeast), allergies, or insects (fleas, mites). This would also cause fur loss. In a senior cat, hyperthyroidism could cause hair loss. Make sure he is up to date on his flea treatments, giving him one such as Revolution or Advantage if he isn't. You will have to disinfect the environment as well. I would have him seen by a vet for this though, and I can give you a number of resources that may help you afford a vet. He does need a physical exam, geriatric blood panel, and urinalysis to check on his overall health, and these tests can help diagnose if he does have hyperthyroidism or not, which is very common in senior cats. Once the cause of his symptoms is diagnosed, the vet can prescribe treatment for him.
Affording a vet:
You can see if your vet accepts payment plans, if there is a low cost clinic in your area, or you can apply for Care Credit online. There is also an organization called Red Rover that give grants for treatment of sick animals, and you can see if you qualify for one of their grants. Best Friends also has a list of resources that offer financial assistance on their website.
http://www.humanesociety.org/animals/resources/tips/trouble_affording_pet.html?credit=web_id91754962https://www.redrover.orghttps://www.carecredit.comhttp://bestfriends.org/resources/financial-aid-petshttp://lessonsfromaparalyzeddog.com/when-pet-owners-cant-afford-veterinary-bills/The Feline Veterinary Emergency Assistance Program is a nonprofit 501 (c)(3) organization that provides financial assistance to cat and kitten guardians who are unable to afford veterinary services to save their companions when life-threatening illness or injury strikes.
God's Creatures Ministry helps pay for veterinarian bills for those who need help.
The Onyx & Breezy Foundation has many programs including helping people with medical bills. They are a good resource for information.
Brown Dog Foundation provides funding to families with a sick pet that would likely respond to treatment, but due to circumstances, there is not enough money immediately available to pay.
IMOM is dedicated to insure that no companion animal has to be euthanized simply because their caretaker is financially challenged.