HSBC is giving its U.K. workers £1,500 to help with inflation costs as British banks spend big on their employees

August 1, 2022, 8:32 PM UTC
Pedestrians pass a HSBC Holdings Plc bank branch.
HSBC is giving their workers £1,500 to help with inflation costs as British Banks spend big on their employees.
Hollie Adams—Bloomberg/Getty Images

British bank HSBC plans to give some of its U.K. employees relief from rising prices in the form of a one-time payment added to their compensation in August. 

For its lower-paid employees, HSBC will give £1,500 ($1,838), according to an internal memo seen by Bloomberg. The hope is that the one-time boost for around 17,000 of the company’s employees will offset the rising cost of living in the U.K.

This comes less than a month after Virgin Money, another bank in the U.K., said it would give employees earning less than £50,000 ($61,268) annually, a one-time payment of £1,000 ($1,225). This payment is expected to be received by workers in late August, with the same goal of helping employees stay financially afloat. 

The inflation rate in the U.K. hit 9.4% in June, propelled by rising food and gasoline costs. 

The two companies above are not alone in their attempts to help lower-paid workers. There’s been an ongoing trend of banks in the U.K. offering some help to employees, mostly through one-off payments. 

In July, Santander said it planned to implement changes so that U.K. workers earning less than £35,000 ($42,888) could qualify for a raise. The company will also increase its entry-level position salaries by nearly £1,000 ($1,225). 

NatWest, a bank based in the U.K., made a similar move, and will raise its average pay £1,000 ($1,225) for more than 22,000 of its workforce. 

In June, both Barclays and Lloyds Banking committed to giving their employees extra compensation—Barclays plans to give £1,200 ($1,470) to its U.K.-based staff, and Lloyds Banking Group plans to give an additional one-time payment of £1,000 ($1,225). 

That’s six banks in the U.K. that hope their one-time extra pay and compensation increases will help employees who are struggling to adjust to current economic conditions.

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