Virgin Money has told most of its staff that they will receive a £1,000 one-off bonus to help with the cost of living.
The banking group – which has offices in Newcastle, Glasgow and Leeds – said all of its employees who are paid £50,000 a year or less, which represents 78% of its workforce, will be eligible. Around 6,000 people will receive the windfall as part of their August pay packet.
In an internal memo, chief executive officer David Duffy said: “The increase in the cost of living is on everyone’s minds, whether in political circles, in the media, or in the local supermarket. It’s also been part of many conversations among the leadership team because we know that many colleagues are experiencing additional pressure on their finances.
“This has been echoed in what you’ve told us in Pulse surveys, in our colleague engagement sessions, and other forums including discussions with our trade union.”
Mr Duffy said the group has monitored “the situation closely” and decided now is the right time to offer more financial support.
It is the latest bank to hand a one-off bonus to staff amid the soaring cost of living, with Lloyds announcing a similar £1,000 payment to its employees last month.
Caren Evans, national officer at Unite, the union representing the bank’s workers, said: “Unite has secured the £1,000 payment following a campaign to show Virgin Money UK how the increases to the cost of living is hitting the overwhelming majority of its staff.
“The union will now continue to campaign to secure a consolidated pay increase for the whole workforce to ensure that all wages increase in line with inflation.”
Last month Virgin Money announced its first share buyback programme, with the lender set to repurchase up to £75m worth of shares. It came after the bank posted a 58% rise in half-year pre-tax profit on the back of strong growth in unsecured lending, including new credit card customers.
