Bonus payments on the rise
Bonus payments are almost back to their pre-recession levels, according to an official analysis.
A number of businesses deferred payments to take advantage of the lower tax rates coming into effect in April 2013.
So the latest survey period covered by the Office for National Statistics is for May 2013 to April 2014. In that period, the total paid out in bonuses was £40.5 billion — a 4.9% increase on a year earlier. And using the regular survey period, the financial year April 2013 to March 2014, bonus payments were £41.3 billion, just below the peak of £42.5 billion paid out in 2007-08.
For financial sector workers, the average bonus was up by 5.6% or £700 to £13,300 in the May 2013 to April 2014 period. The rise was more than double the 2.6% increase to £1,500 for the economy as a whole.
Much press coverage is given to the bonuses paid to fat cat bankers. But the finance and insurance industry paid out £14.4 billion, while the rest of the economy paid out £26.1 billion.
And the gap between the two sectors widened as there was a 6.1% increase in the rest of the economy compared with a 2.1% increase in finance and insurance.
In the latest survey period, bonuses in the private sector increased by 5.8% to £39.1 billion.