London Daily

Focus on the big picture.
Tuesday, Aug 11, 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
UK Manufacturing Output Records Fourth Straight Month of Growth
UK Condemns Russian Torture of Ukrainian Prisoners and Recruitment of Foreign Nationals
Long-Lost Royal Navy Warship HMS Tiger Found in English Channel After 118 Years
Northern Ireland Finance Minister Seeks Urgent Treasury Talks Over Regional Budget Pressures
UK Government Targets Subscription Traps and Misleading Discounts in New Consumer Rules
Alleged Cartel Boss Daniel Kinahan Extradited From Dubai to Face Criminal Charges
AI Chatbots Challenge Traditional News Consumption and Raise Job Concerns
Andy Burnham Government Promises Crackdown on Exploitative Business Practices
UK University Funding Model Faces Growing Pressure From Unsustainable Student Debt
Government Urged to Subsidise Energy Bills for Vulnerable UK Households
UK Military Spending Plans Threaten to Deepen Infrastructure Funding Gap
Israeli Government Rejects US Peace Framework for Gaza
New Labour Government Signals Closer Economic and Strategic Ties With European Union
Amber Heat-Health Alerts Issued Across England as Temperatures Threaten 36 Degrees
UK Economy Expected to Grow Despite Energy and Supply Chain Shock From Iran Conflict
Foreign Social Media Accounts Drove Disinformation During Belfast and Southampton Riots
Record Number of Migrants Cross English Channel in Single Vessel as Smugglers Deploy Mega-Dinghies
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
Reports of Mark Zuckerberg-Linked Superyacht Declining Rescue Assistance Draw Maritime Scrutiny
Preserving Three Banksy Artworks in London Has Cost Taxpayers Nearly £150,000
Four Ugandan Athletes Disappear From Delegation After UK Sporting Events
French Authorities Report Channel Interventions as Cross-Border Migration Dispute Continues
Home Office Admits Error in Settled Status Case Involving Long-Term Italian Resident
Unite Calls for Independent Review of UK Budget Watchdog's Fiscal Forecasting Rules
Thinktank Calls for £175 Annual Energy Bill Cut for Low-Income Households
Foreign-Linked Social Media Accounts Amplified Recent Unrest in Belfast and Southampton, Analysis Finds
London Mayor Sadiq Khan Orders Westminster to Drop Proposed Soho and West End Hospitality Ban
Royal Navy Deployments to Monitor Russian Activity in UK Waters Rise 25 Percent
UK Economy Expected to Grow 0.4 Percent in Second Quarter Despite Geopolitical Pressures
Andy Burnham Launches Cost-of-Living Measures Targeting Subscription Traps and Misleading Discounts
Hyper-Realistic Reborn Dolls Draw Collectors Seeking Comfort and Craft
Gen Z Cuts Back on Dating as a Night Out Nears $200
Patients Turn to Artificial Intelligence for Therapy as Psychiatrists Warn of Privacy and Clinical Risks
Couples Embrace ‘Sleep Divorce’ to Protect Rest and Reduce Tension
Meta Ordered to Pay $567 Million and Change Facebook and Instagram Safeguards for Children
Up to only 10 Months in Prison for Swedish Officer’s Murderer Sparks Anger
Success: Nvidia Turned Gaming Chips Into the Engine of the AI Boom
Jorge Messi, Lionel Messi’s Father and Longtime Agent, Dies at 68
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Advertising trick: Pepsi’s Harrier Jet Commercial Led to a $700,000 Court Fight
Meta Raises AI Spending Target to as Much as $145bn Despite Pressure Over Returns
Danube Drought Exposes Nazi Wrecks and Pushes Central Europe’s Power System to the Brink
Joe Biden’s Cancer Has Spread Beyond His Bones, Hunter Biden Says
Air Traffic Control Outage Grounded Flights Across the Midwest
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Why Markets May Look Quiet in August After Big Tech Earnings
Partial Solar Eclipse Expected to Draw Interest Across Southwestern UK
UK Graduate Job Postings Fall 7% as Entry-Level Opportunities Remain Scarce
UK Private Sector Returns to Growth as July Activity Reaches Highest Level Since April
UK Summer Drought and Wildfires Raise Pressure for Stronger Environmental Measures
×