London Daily

Focus on the big picture.
Tuesday, Aug 04, 2026

One in 20 big businesses have offered workers a cost-of-living bonus

One in 20 big businesses have offered workers a cost-of-living bonus

Barratt, Taylor Wimpey, Lloyds, Rolls-Royce, and HSBC are also among the big companies to have given workers bonuses to help them cope with more expensive bills.

Around 5% of businesses with 250 or more employees have offered a one-off cost-of-living payment to their workers in the last three months.

The figure comes from the Office for National Statistics' Business Insights report, which also says the rate was just 1% among smaller firms.

It comes despite many businesses struggling with their own rising costs, with 27% saying their main concern is inflation, and 20% saying it is the cost of energy.

Sky News has previously reported that housebuilders Barratt and Taylor Wimpey offered staff £1,000 to help them cope with the rising cost of living.

At Barratt, the payment was for 6,000 staff below senior management level and at Taylor Wimpey it was for workers on salaries under £70,000 - roughly 90% of its workforce.

Lloyds, Rolls-Royce, and HSBC are also among the big companies to have given workers bonuses to help them cope with more expensive bills.

In February, Bank of England Governor Andrew Bailey was criticised for suggesting that workers should not ask for big pay rises, as they could be fuelling inflation.

This is because of the risk that employers will then pass on the cost of higher wages to consumers in the form of higher prices, creating an inflation spiral.

The bank hiked rates by 50 basis points last week - the sixth rise since December and the biggest rise since 1995 - one of the few tools it has to fight inflation.

But, with inflation last recorded at 9.4% and energy price forecasts getting more dire by the week, many workers are left with little choice but to seek pay rises.

A number of unions have launched strike action, or are preparing to, including rail workers, bus drivers, postal workers, barristers, and port workers.

They are all seeking better pay ahead of what is expected to be a difficult winter for many of those on low incomes.

Jane Gratton, head of people policy at the British Chambers of Commerce, said: "The cost-of-living crisis is having a dual impact on people and their employers.

"Businesses are doing all they can to support staff through this difficult time, including awarding cost-of-living increases where possible.

"But firms are facing an unprecedented tidal wave of rising costs - including energy, and raw materials.

"Smaller firms, especially, are simply not in a position to absorb this inflationary whirlwind and have much less scope to increase staff pay and benefits.

"We are very concerned that prices are rising and investment is falling.

"That's why we need to see action by government to relieve some of the crippling pressures that businesses are facing.

"Cutting the VAT on energy bills from 20% to 5% would give them some vital breathing space."

Newsletter

Related Articles

0:00
0:00
Close
Met Police Investigated Journalist Who Questioned Cambridge Professor
Badenoch Defends Tory Candidate Jailed for Antisemitic Abuse of Luciana Berger
NHS Spends £240m a Year Storing Paper Records Despite Digital Push
Apple Seeks Court Order to Stop OpenAI Using Alleged Trade Secrets
Breaking With the Past: One of the World’s Smallest Countries Changes Its Name
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
Comcast: Tied to a Chair and Hit in the Face With Cake: The Regular Humiliation Ritual at the US Corporate Giant
Aston Martin Faces Legal Threat Over £550m Rescue Deal
Reform UK Wants the Royal Navy to Return Channel Boats to France
Spain and Morocco Trade Blame After 72,000 Migrants Enter Ceuta
US and Japan Step In to Support the Yen in Rare Joint Intervention
The AI Pricing Problem: Companies Cannot Predict Their Own Bills
Europe’s Heat and Drought Are Now Disrupting Power, Shipping and Tourism
Apple’s OpenAI Lawsuit Becomes a Public Fight Over AI Hardware
UK Man Jailed After Keeping His Mother’s Body in a Freezer and Claiming £78,000
A SpaceX Rocket Is About to Crash Into the Moon — and Scientists Hope to Watch
World War II munitions discovered after wildfires in southern France
BP profits reach four-year high amid Middle East conflict
Europe’s Drying Rivers Trigger Power Cuts, Factory Shutdowns and Wildfire Emergencies
UK Driver Sentenced to Four Years for Staged Electric Vehicle Brake Failure Fraud
Conservative Party and Reform UK Face Scrutiny During Clacton By-Election Campaign
Ministry of Justice Reviews Early Release Rules After Public Anger Over Police Killer Cases
NHS Radiographers Report Rising Racist Abuse From Patients Across UK Hospitals
UK Banking Regulators Face Pressure After Customer Loses Fourteen Thousand Pounds in AI Voice Scam
Research Challenges Treasury Control Over UK Public Spending and Calls for Greater Local Decision-Making
Home Office Begins Four-Week Weapons Surrender Campaign Across Major English Cities
Southern England Records Driest July in Nearly Two Centuries as Drought Concerns Grow
Apple Challenges UK Government Request for Access to Encrypted User Data in Legal Fight
BP Reports Sharp Profit Increase as Middle East Conflict Drives Global Oil Prices Higher
Nigel Farage Expresses Openness to Potential Alliance with Restore Britain
AstraZeneca Merger Talks Reflect Intensifying Pharmaceutical Consolidation
University Merger May Set Template for Higher Education Reform
Apple's Legal Challenge Highlights Growing Tension Over Encryption and Surveillance
Prime Minister Andy Burnham's Agenda Signals Shift Toward Greater Regional Devolution
Mental Health Trust Faces Criticism Over Planned £25 Million Budget Cuts
Scientists and Cultural Leaders Call for Funding to Save Jodrell Bank Observatory
UK Manufacturing Output Reaches Highest Level in Nearly Two Years
University of Greenwich and University of Kent Complete Landmark Merger
Nigel Farage Unveils Naval Border Proposal Amid Questions Over £5 Million Donation
Prime Minister Andy Burnham Pledges Tougher Action on Small Boat Crossings
Apple Challenges UK Government Over Encrypted Data Access Demands
AstraZeneca Shares Fall After Reports of $400 Billion Bristol Myers Squibb Merger Talks
Triple Lock Lifts UK State Pension but Leaves a Wider Retirement Gap
Danube Drought Forces Hungary’s Paks Nuclear Plant Into Full Shutdown
Ceuta Death Toll Rises as Spain and Europe Clash Over Border Response
Cuba’s Grid Fails Again as Fuel Crisis Deepens
Nazca Lines Flight Crash Kills Thirteen as Peru Suspends Aerodiana
Modern Slavery Decisions Broaden the Al Fayed Inquiry’s Frame
FIFA’s Retreat Leaves a Larger Question Over Who Guards the Game
Two Firefighting Crew Members Die in Helicopter Collision West of Athens
×