Trade union body the TUC claims soaring profits and bonuses among Britain’s big banks is evidence of why a windfall tax is needed to help hard-up families – calling it “common sense and long overdue”
Banks dished out £16.4billion worth of bonuses in the first three months of this year and the highest since the financial crisis of 2008, analysis has revealed.
The record sum for January to March – when many annual bumper rewards to top earners are made – follow another year of eye-watering profits for Britain’s big banks. The finding came as trade union body the TUC urged the government to hike a bank windfall tax, calling it “common sense and long overdue”.
Economists say much of the sense of unrest and anger among voters stems from painfully slow growth in living standards since the banking crisis of 2008. The government was forced to inject tens of billions into bailing-out banks, leading to a surge in public sector debt and triggering spending cuts and tax hikes.
The TUC’s analysis of Office for National Statistics data suggests £25billion was paid in bonuses to around 1.1 million workers in the finance and insurance industry in the year to March this year. The biggest chunk was £16.4billion between January and March.
Separate figures show the scale of the bonus bonanzas raked in by bosses of Britain’s big banks. Charlie Nunn, chief executive, of Lloyds Banking Group, netted £7.4million for last year, of which £4million was bonuses. And Paul Thwaite, boss of NatWest, for 2025, also received £4million in bonuses as part of a £6.5million package.
While the figures include all levels fo workers, the numbers are skewed by wheeler dealer traders and others who can demand massive payouts. Ahead of Chancellor Rachel Reeves’ Mansion House speech on Tuesday, the TUC is calling for an increase in the bank surcharge tax to permanently cut energy bills for the majority of households through a social tariff.
It argues that a 16% surcharge would deliver £24billion over four years, while a 35% surcharge – which would be the same level as the windfall tax the Conservatives imposed on energy companies – would bring in £60billion over four years. Even just reversing the Tory cuts and setting it at 8% – which the TUC says is the “bare minimum” – would raise £9billion over four years, the analysis claims.
It comes after Britain’s big four banks – Barclays, HSBC, Lloyds and Natwest – made profits of £45.7billion in 2025. TUC General Secretary Paul Nowak said: “While sky-high bills are looming for working people, bank bonuses are booming.
“Every time there is talk of taxing banks, some of the richest people in the country start whining and try to claim they can’t afford to pay any more. But the big banks are making a killing off the back of higher interest rates and mortgage misery across the country. They can well afford to pay more tax.
“The case for an increase in the bank surcharge tax has never been greater. It’s a long overdue common-sense solution – and the government should use to money raised to cut people’s energy bills.”
Sara Hall, co-executive director at the group Positive Money, said: “Record bonuses to celebrate record profits – the cost of living crisis must be something of a fantasy to City bankers. Banks aren’t redirecting the windfall profits they’ve made from higher interest rates towards the households or businesses struggling to pay them, so it falls to the Government to do so in their stead.
“Andy Burnham is being handed a rare opportunity to rebalance the scales in the public’s favour – he should seize the chance to implement this popular policy that won’t cost the Government a penny, but might just earn it some desperately-needed trust.”
