United Kingdom: Virgin Money to pay out £1,000 bonus to help staff cope with inflation

On 19 August, UK bank Virgin Money is to pay 78% of its staff a £1,000 (€1,175.31) bonus help them deal with the soaring cost of living. The 6,000 or so employees of the company set to pocket the bonus earn no more than £50,000 (€58,765) per year. They may opt to pay some or all of the sum into their pension pot. David Duffy, chief executive of Virgin Money, says: “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.” Meanwhile trade union Unite says the bonus is the result of lengthy negotiations between the company and staff representatives. “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,” said Caren Evans, Unite national officer, in a statement published on July 19. One of Virgin Money’s competitors in the UK banking sector, Lloyds Bank, revealed a similar measure in June, whereby 64,182 employees, or 99.5% of its workforce, will each receive £1,000 in August.