Santander UK, Virgin Money join firms helping staff with cost of living crisis
THE British arm of Spanish lender Santander said on Tuesday (Jul 19) it would award a 4 per cent pay rise to around 11,000 UK-based employees to help with the rising cost of living, as inflation cripples household budgets across Britain and beyond.
"This 4 per cent pay raise will make a real difference to the majority of our customer-facing and contact centre staff who are committed to helping our customers and businesses prosper in the current economic climate," chief executive Mike Regnier said in a statement.
All employees earning under £35,000 (S$58,567) will be eligible for the rise, which covers 60 per cent of the bank's UK workforce, Santander said.
The bank also said it would increase its entry level salaries to £19,500 from Aug 1.
Santander joins a chorus of banks including Barclays, Lloyds Banking Group and NatWest announcing similar pay increases for lower-paid staff after inflation in Britain hit a 40-year high of 9.1 per cent in May.
British challenger bank Virgin Money also said on Tuesday it would give almost four-fifths of its workforce a 1-off cost of living payment of £1,000 in their August pay packets.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The payout, which follows an average increase of 5 per cent in base salary in January, is not linked to the lender's annual pay review or bonus arrangements. All staff earning £50,000 or less will qualify and part-time workers will receive the same payout as full-time colleagues.
"The increase in the cost of living is on everyone's minds, whether in political circles, in the media, or in the local supermarket," chief executive David Duffy said in a staff memo.
Virgin Money has already launched several initiatives to help staff manage their finances including offering full flexibility on working from home, which has helped to reduce commuting costs for many employees, a spokesperson said.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
MAS ‘following up’ with DBS on cause of May 2 glitch in digital banking services
UBS reports first profit since taking over Credit Suisse
New Thai finance chief wants monetary, fiscal policies aligned
Australia’s central bank holds cash rate at 4.35%
Japan warns of action over rapid currency moves
Nomura targets 20% revenue growth from global markets business