Finance and industry workers get an average of £12,000 in bonuses

| September 19, 2012 | 0 Comments

By
This Is Money Reporter

08:45 EST, 19 September 2012


|

09:08 EST, 19 September 2012

Finance and insurance industries’ workers received an average £12,000 in bonuses during the last financial year, according to latest official data.

The Office for National Statistics said the average bonus paid out by financial firms in the 12 months to April was £1,500 lower than the previous year. However, it was still far ahead of the £1,400 average paid in the economy as a whole.

And despite finance and insurance workers accounting for only 4 per cent of the total workforce, they received 36 per cent of the £37billion of bonuses paid out across the economy.

Big pay: Workers in the finance and insurance industry account only for 4 per cent of the total workforce but received 36 per cent of the total bonuses paid out across the economy

Big pay: Workers in the finance and insurance industry account only for 4 per cent of the total workforce but received 36 per cent of the total bonuses paid out across the economy

The average bonus in the private sector was £1,700, which was more than
five times the average public sector bonus of £300, although the ONS
said public sector pay tends to be higher because the bonus culture is
not so prevalent.

Public
sector bonuses were pushed up by the part-nationalised banks such as
Royal Bank of Scotland and Lloyds. Excluding financial services the
average would have been £100.

Total bonuses increased by 3 per cent compared to the previous financial year, with most industries enjoying an average increase, helping push windfalls in the non-financial sectors close to their pre-recession levels.

The second highest average bonuses,
amounting to £6,900 per employee, were paid to mining and quarrying
workers, including those working in oil extraction and exploration.
But this industry had a small impact on the total of bonuses paid in the
whole economy as it employs just the 0.2 per cent of the total
workforce.

While the
professional, scientific, technical and communication industries saw the
biggest rise in bonuses, paying £0.6billion more in the year to April
compared to the previous year.

Office for National Statistics: Total bonus payments by financial year (April to March)

Office for National Statistics: Total bonus payments by financial year (April to March)

The
reduction in City pay came after Bank of England governor Sir Mervyn
King urged bankers to learn from the selfless dedication of Team GB
athletes and Olympics volunteers and reduce payouts.

The banking sector has also hit harder times since the financial crisis,
as profits have been impacted by economic weakness, a number of
scandals such as the mis-selling of payment protection insurance and a
raft of new legislation.

Unison general secretary Dave Prentis
said it was a disgrace that the lure of big bonuses had fuelled the
recession and that yet today’s figures showed finance workers were still
bringing home more in bonuses than many public service workers got paid
in a year.

He
said: ‘The pay freeze is having a devastating impact on the families of
nurses, home care workers, paramedics, dinner ladies and millions more
public service workers.

‘At
the other end of the spectrum the Government is happy to sit back and
let the bonus culture go on. It is time to tackle this divided Britain
and put an end to this damaging pay freeze.’


Office for National Statistics: Contributions to total bonus payments by industry

Office for National Statistics: Contributions to total bonus payments by industry

Filed Under: finance news

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