City bonuses will continue to fall

The estimated level of bonuses for City employees for the Christmas and early 2013 period are down to £1.6 billion, a decrease from a £2.3-billion estimate made six months ago, according to research by the Centre for Economics and Business Research (CEBR).

Its study, London, city and regional prospects, found that, in 2012, the bonus pool amounted to £4.4 billion, but the CEBR forecast that the pool will fall to £1.6 billion in 2013, and will continue to diminish until it reaches a low of £1.56 billion in 2015.

The peak for city bonuses was in 2008 when the pool stood at £11.56 billion, which equates to £33,000 per London city worker. The 2012 pool for bonuses means each employee will receive an average payout of £6,400.