Bumper City bonuses of pre-financial crisis are back, TUC finds
Bonuses paid to the UK’s bankers, insurance brokers and other financial sector workers have hit a record high and are rising more than six times faster than average wages in the UK, unions have found.
The Trades Union Congress said its analysis suggested that the City’s bumper executive bonuses of the pre-financial crash era are back, even as much of the country struggles with a soaring cost of living that is outstripping pay rises.
The analysis of official figures showed bonuses in the financial and insurance sector grew by 27.9% over the last year, while average wages in the same period grew by just 4.2%. Nearly £6bn was paid out in City bonuses in March alone.
Frances O’Grady, the general secretary of the TUC, said: “There is no justification for such obscene City bonuses at the best of times – let alone during a cost-of-living crisis. While City executives rake it in, millions are struggling to keep their heads above water.
“Working people are at breaking point, having been left badly exposed to soaring bills after a decade of standstill wages and universal credit cuts. Ministers have no hesitation in calling for public sector pay restraint, but turn a blind eye to shocking City excess. It’s time to hold down bonuses at the top – not wages for everyone else.”
O’Grady called for a series of measures to rein in City bonuses and push up wages across the economy. They include introducing maximum pay ratios, so that bonuses are no more than 10% of total pay; ensuring that bonus schemes are open to all staff on the same terms; and ensuring workers are included on company pay committees.
Last month the Institute for Fiscal Studies thinktank found that the return of bumper finance industry payouts meant the top 1% highest-paid
Read more on theguardian.com
