Union outraged by big bonus payments for the financial sector

The Trade Union Congress (TCU) is outraged to see that statistics revealed that bonus payments for the finance and insurance sector in 2010/11 totalled £35 billion, the same as the previous year. The union believes that the figures from the Office for National Statistics (ONS) show that the Chancellor’s attempt to curb bonuses at financial institutions has failed.

The findings highlight that despite only four per cent of employees working in this area, the sector accounts for nearly 40 per cent of additional payments to staff.

TUC General Secretary, Brendan Barber, said: “City bonuses are still far too high and the incentives for risky and damaging decisions far too great, especially when bankers know that taxpayers will have to pick up the tab.”

Althoughthe finance and insurance sectors accountfor a large proportion of this type of remuneration, the bonuses are lower than seen in previous years. During peak years of 2006/07 and 2007/08, £19 billion was paid out. This is compared to only £14 billion in 2009/10. However, the ONS does point out that payments are still 58 per cent higher than they were a decade ago.