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HSBC's lowest-paid workers given £1,500 to help with cost of living

The lowest-paid HSBC workers will receive the funds in their August payslips. Photo: Reuters/Toby Melville
The lowest-paid HSBC workers will receive the funds in their August payslips. Photo: Reuters/Toby Melville

HSBC (HSBA.L) has become the latest bank to help its workers deal with the surging cost of living and tougher economic climate. by giving an extra cash boost to its lowest-paid staff.

The London-based lender will give a one-off payment of £1,500 to junior employees including customer-facing workers in UK branches and contact centres.

Those eligible will receive the funds in their August payslips.

Some staff will need more support to avoid financial hardship in the coming months due to the impact of 40-year high inflation, that is still yet to peak, and the soaring cost of energy, the bank said.

The FTSE 100 (^FTSE) bank said it will consider the longer term impact of inflation and cost of living for all its workers in pay reviews.

The decision on Monday follows HSBC's discussions with trade union Unite.

Unite welcomed the move, saying: "The union will continue to campaign to ensure all staff receive a fully-consolidated pay increase to ensure pay rates keep up with living costs."

Read more: HSBC vows to restore dividends after profits beat estimates

It comes as the Bank of England looks set to accelerate the pace of interest rate hikes this week in an effort to reign in prices that are running at 9.4% — the fastest pace since 1982.

At present, all five of Britain's largest retail banks have vowed to pay staff more as household incomes are squeezed by rampant inflation.

Santander (BNC.L) will give 11,000 UK workers a 4% pay rise, while Barclays (BARC.L) has promised to bump pay by £1,200 for 35,000 UK-based staff.

NatWest (NWG.L) is handing 22,000 employees an average pay increase of around £1,000 from September and Lloyds Banking Group (LLOY.L) staff will be given an additional £1,000 this summer.

Other high street banks have also pledged cash support for staff after campaigns led by Unite.

Around 95% of employees at Co-operative bank are set to receive a £1,000 rise in September, with only those on the highest salaries excluded.

TSB said it will give 4,500 employees a £1,000 bonus. The payment will be made in two stages, with the first one being paid in October this year and the remaining in February 2023. Staff earning up to £35,000 at the bank will be eligible for the payment.

Watch: How to save money on a low income