London Daily

Focus on the big picture.
Wednesday, Sep 23, 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
Piddington Residents Back Symbolic Independence Vote Over Asylum Accommodation Plan
Reform UK Names Helen Jenner as New Leader in Wales
England Expands Devolution of Transport, Skills and Economic Development Powers
Liberal Democrats Call for Temporary Fuel Duty Cut to Ease Cost-of-Living Pressure
UK Farmers Warn Drought Has Caused Crop Failures and Reduced Harvests
UK Fixed Mortgage Rates Approach 6% as Lenders Raise Borrowing Costs
YouGov Poll Puts Labour at 23% With Conservatives and Reform UK on 21%
Badenoch Presses Burnham to Increase Defence Spending and Cut Welfare Costs
UK Military Figures Warn of Growing Threats to Undersea Infrastructure and National Readiness
BP Moves Ahead With Sale of UK North Sea Oil and Gas Business
UK and ASEAN Endorse New Framework for Trade and Economic Cooperation
UK Consumer Confidence Falls to Three-Year Low as Borrowing Costs and Job Concerns Rise
UK Inflation Rises to 3.1% as Motor Fuel Costs Push Prices Higher
Bank of England Sets Multi-Year Plan to Wind Down Quantitative Easing Holdings
UK Borrowing Rises to £18.3 Billion in August Ahead of October Budget
Michelin Guide Faces Industry Questions Over Restaurant Inspection Coverage
English Woodlands Face Renewed Weather Stress From Dry Conditions and Strong Winds
Research Finds Extensive Alcohol, Gambling and Unhealthy Food Branding During 2026 World Cup
Five Charged After Newborn Baby Dies From Stab Wounds in Sheffield
BT Could Reap £2 Billion From Recycling Copper as Full-Fibre Network Expands
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
Reform UK Names Helen Jenner as New Leader in Wales After Dan Thomas Steps Down
Resolution Foundation Calls for Broad-Based Tax Rises to Fund Higher UK Defence Spending
Ed Davey Calls for Global Treaty to Halt Development of Super-Intelligent AI
Scotland Consults on Legal Price Caps for Essential Foods
NHS Productivity Reforms Could Prevent More Than 20,000 Early Deaths a Year, Report Says
United Kingdom and ASEAN Deepen Trade and Investment Cooperation
United Kingdom Deploys RAF Refuelling Support to Saudi Arabia After Houthi Attacks
UK Fiscal Headroom Shrinks as Higher Borrowing Costs Complicate Autumn Budget
UK Public Borrowing Jumps to £18.3 Billion in August, Raising Pressure Before Budget
Andy Burnham Reaffirms UK Net-Zero Target With £30 Million Community Energy Fund
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
UK Consumer Confidence Falls to Three-Year Low
UK Diesel Prices Approach £2 a Litre as Global Supply Shortages Intensify
Chiltern Railways Returns to Public Ownership as UK Rail Nationalisation Advances
British Museum Faces Questions Over Peter Thiel’s Private Bayeux Tapestry Viewing
Earl Spencer Memoir Excerpts Renew Public Debate Over Diana’s Death
Liberal Democrats Gather in Brighton for Autumn Conference
Mothercare Shares Plunge as Middle East Store Closures Threaten Long-Term Solvency
Kent Police Treat Folkestone Hotel Fire as Suspicious
Caribbean Governments Advance Reparations Campaign Seeking Engagement With Britain
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
UK Competition Regulator Opens Inquiry Into McCormick-Unilever Foods Deal
Public Inquiry Into Tees, Esk and Wear Valleys Mental Health Failings Set to Begin
Nigel Farage Looks to US Immigration Enforcement Model for UK Border Policy
Chiltern Railways Moves Into Public Ownership
Security Review Raises Concerns Over Sensitive UK Police Data Stored on Microsoft Cloud
Burnham Government Warns of Difficult Autumn Budget as Fiscal Headroom Narrows
Bank of England Holds Rates at 3.75% as Inflation Rises to 3.1%
×