Banks have distributed bonuses totaling £16.4 billion in the first quarter of this year, marking the highest amount since the financial crisis of 2008, according to recent analysis. The substantial sum for the period from January to March, which typically sees significant rewards for top earners, follows a year of considerable profits for major banks in the UK. The Trade Union Congress (TUC) has called for an increase in a bank windfall tax, emphasizing its necessity and long-overdue nature.
Economists attribute much of the public’s discontent and frustration to the sluggish growth in living standards since the 2008 banking crisis. The government’s bailout of banks with billions of pounds resulted in a surge in public debt, leading to austerity measures such as spending cuts and tax hikes.
Data from the Office for National Statistics analyzed by the TUC indicates that approximately 1.1 million employees in the finance and insurance sector received bonuses totaling £25 billion in the year leading up to March, with a significant portion, £16.4 billion, awarded between January and March.
Notably, executives of prominent UK banks have been receiving substantial bonuses. For instance, Charlie Nunn, the CEO of Lloyds Banking Group, received £7.4 million last year, including £4 million in bonuses, while Paul Thwaite, the NatWest boss, was granted £4 million in bonuses as part of a £6.5 million package for 2025.
Although the bonus figures encompass all employee levels, they are skewed by high-earning traders and other individuals who command large payouts. The TUC is advocating for an increase in the bank surcharge tax to reduce energy bills for the majority of households through a social tariff, proposing various surcharge levels that could generate significant revenue over four years.
Following the £45.7 billion profits made by the big four UK banks in 2025, the TUC General Secretary Paul Nowak highlighted the disparity between escalating bills faced by working individuals and the flourishing bank bonuses.
The TUC and advocacy groups argue that banks should contribute more through taxes, especially given their substantial profits amid economic challenges faced by households. They urge the government to implement policies that would balance the economic scales and benefit the public, emphasizing the need for increased trust between the government and its citizens.
