Banking organisation Lloyds Bank has offered its staff either a £2,000 pay rise or a 5% lift in salary up to a maximum of £5,000, whichever is greater.
According to a notice published by trade union Unite to its members at the bank, the pay offer equates to an increase of between 8% and 13% for the 43,000 members of staff on the employer’s lowest pay grades, which would be above current inflation rates.
The bank also said it would consolidate a 4% flex into the base pay for all employees, while also consolidating some bonuses into base salaries for some, while those on the A to D pay grades will receive a £500 ex-gratia payment.
The pay deal will apply to all employees, subject to approval via union ballots set to take place this month.
Lloyds has also introduced a new minimum full-time salary of £21,200, which will be effective from 1 April 2023. A spokesperson said this would be £22,000 once it incorporates a pay allowance for benefits into base pay from that date.
According to the bank, the pay deal has been introduced in order to support employees in challenging times, and to consolidate some elements of variable pay into base salary, to provide greater certainty and improve pensionable earnings.
Unite’s newsletter stated: “Unite has reviewed the offer and feel it goes a long way to meet our pay claim, addressing seriously the concerns and worries of our members as well as beginning to tackle some of the structural pay and reward concerns our members highlighted to us during last year’s pay ballot. Given the challenging economic times we believe it is a fair offer providing bespoke support for different grades on what matters most to them as per our 2023 pay survey.”
Earlier this year, Lloyds awarded 99.5% of its workforce, which equates to more than 64,000 employees, with a one-off £1,000 payment in order to support them during the cost-of-living crisis.