Lloyds should use some of its increased profits from higher interest rates to give all staff in grades A-G an additional cost of living payment of £2000 before Christmas.

Pay and the cost of living crisis is the number one detractor when it comes to Lloyds Banking Group’s advocacy score according to the results of the September Pulse Survey. One member of staff quoted in the results said: “With the cost of living going up and the income I receive I struggle to pay all my bills. I could get a job at Bicester Village folding clothes and earn much more”. Many members who are increasingly struggling to make ends meet will sympathise with that comment.

Energy prices are set to increase in a few days and inflation is spiralling out of control. Food price inflation is now running at 5.1%, the highest level seen since the last financial crisis. Lloyds staff need more help now, not next year. One of the HR sponsored staff unions – Accord – suggested bringing forward the April 2023 pay increase to January. Bringing forward a rubbish pay deal, which is what Accord’s agreed for the last 3 years, is not going to help anyone, other than the bank.

In his recent fireside chat at the Bank of America CEO conference, Charlie Nunn said that a 0.25% increase in interest rates produced £175 million of revenue for Lloyds. Much of that revenue would go straight to the bottom line. Interest rates have increased from 0.01% in December 2021 to 2.25% in September. A further big increase is expected in November. Some of that windfall profit from increased interest rates should be used to pay an additional £2000 cost of living increase for all staff in grades A-G, with no pro-rating for reduced hours staff. The bank can afford it, especially when it’s handing out free shares to senior executives like confetti!

What Cost Of Living Crisis?

The day before the Chancellor gave a tax windfall to those earning more than £150,000 a year [Charlie Nunn, Lloyds CEO, will be £128,969 better off from November based on his salary of £2,180,00] Lloyds awarded all of its senior executives with another tranche of free shares. Those free share awards, details of which are set out below, were introduced when the bankers’ bonus cap was set by the EU in 2014. Like many banks, Lloyds introduced free shares to get around the bonus cap and they are given to senior executives just for turning up to work.

Third Tranche Of Free Shares

Charlie Nunn £135,338

Willian Chalmers £64,962

Antonio Lorenzo £64,420

David Oldfield £63,158

Janet Pope £45,113

Stephen Shelley £64,060

Andrew Walter £45,113

It’s perverse that at a time when many thousands of Lloyds staff are struggling, the bank insists on doling out free shares to senior executives whose only dilemma this winter will be whether or not to switch off their heated swimming pools!

The bank can easily afford to a make a further one-off additional cost of living increase before Christmas.

Members with any questions should contact the Union’s Advice Team on 01234 262868 (choose Option 1).

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