The City has proved its resilience to challenging economic headwinds, with bonuses increasing at more than twice the speed of wages since the financial crash.
The rapid growth in bonuses reflects the continued activity in the Square Mile and the lack of real-terms growth in people’s salaries.
While most workers’ salaries had effectively plateaued, TUC analysis showing that average City bonuses have doubled in cash terms over the period.
Bonuses in the finance and insurance sector are now worth, on average, around £20,000 a year – the highest level on record, according to the union organisation.
The TUC said under the current cap, an employee’s bonus can be no bigger than 100 per cent of their annual pay, or 200 per cent if there is approval from shareholders.
However, under plans unveiled by Chancellor Kwasi Kwarteng in the mini-budget will remove the cap on bonus payments.
The TUC said its analysis indicated that the average City banker’s bonus is worth almost two thirds of an average worker’s pay.
TUC general secretary Frances O’Grady said: “Everyone who works for a living deserves to earn a decent living, but Ministers are holding down the pay of millions of key workers, while lining the pockets of City financiers.
“There is simply no justification for lifting the cap on bankers’ bonuses – especially when nurses and teaching assistants are having to use food banks to get by.”