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TUC: City bonuses are rising six times faster than wages

“No justification for such obscene City bonuses at the best of times – let alone during a cost-of-living crisis”, says TUC

  • Union body calls for measures to clamp down on excessive bonuses and get wages rising across the economy 

Bonuses in the City are at a record-high and rising six times faster than wages, according to new analysis published by the TUC today (Monday).  

Analysis of ONS data shows bonuses in the financial and insurance sector grew by 27.9% over the last year, six times faster than average wages in the same period, which grew by 4.2%.   

In nominal terms, this rate of growth saw the average bonus awarded in the finance and insurance sector rise from £3,146 in the first quarter of 2021 to £4,021 in the first quarter of 2022.  

In the same period, average monthly regular pay in the UK rose from £2,315 to £2,413 (in nominal terms). 

Significant bonuses are common for high-paid City executives and come on top of salaries. The TUC highlights that there are also many low-paid workers in financial services, who get much smaller sums.  

These figures put City bonuses at the highest since records began – dwarfing average pay in almost all sectors.   

In March 2022, finance and insurance bonuses were 2.4 times larger than the average worker’s basic monthly pay, and higher than average basic monthly pay in every other sector of the economy, with the exception of mining and quarrying. 

City bonuses in March 2022 were worth a total of £5.9 billion. 

The TUC warns that record-high pay-outs suggest that City executives’ bumper bonuses of the pre-financial crash era are back.

Click here for the full press release


Original article link: https://www.tuc.org.uk/news/tuc-city-bonuses-are-rising-six-times-faster-wages

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