London Daily

Focus on the big picture.
Monday, Aug 25, 2025

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
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
Nurse who raped woman continued working for a year despite police alert
Drought forces closures of England’s canal routes, canceling boat holidays
Sweet tooth scents: food-inspired perfumes surge as weight-loss drugs suppress appetites
Experts warn Britain dangerously reliant on imported food
Family of Notting Hill Carnival murder victim call event unmanageable
Bunkers, Billions and Apocalypse: The Secret Compounds of Zuckerberg and the Tech Giants
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
MSNBC Rebrands as MS NOW Amid Comcast’s Cable Spin-Off
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
×