Banks have allocated £16.4 billion in bonuses during the first quarter of this year, marking the highest amount since the financial crisis in 2008, according to recent analysis. The substantial sum for the period of January to March, which typically sees significant rewards for top earners, comes after a year of substantial profits for major British banks.

The Trade Union Congress (TUC) has called on the government to implement a bank windfall tax, citing it as “common sense and long overdue.” Economic experts attribute much of the public’s discontent and frustration to the slow growth in living standards following the 2008 banking crisis, which necessitated significant government bailouts and resulted in increased public debt, leading to austerity measures.

Data from the Office for National Statistics analyzed by the TUC indicates that bonuses totaling £25 billion were paid to approximately 1.1 million individuals in the finance and insurance sector up to March of this year, with a significant portion amounting to £16.4 billion in the first quarter alone.

Separate statistics highlight the substantial bonuses received by top executives at leading British banks. For instance, Lloyds Banking Group’s CEO, Charlie Nunn, received £7.4 million last year, including £4 million in bonuses. Similarly, NatWest’s boss, Paul Thwaite, received a £6.5 million package, with £4 million attributed to bonuses for the year 2025.

While these figures encompass all levels of employees, they are skewed by traders and other high-earning individuals who command significant payouts. The TUC is advocating for an increase in the bank surcharge tax to alleviate energy costs for the majority of households through a social tariff, proposing various surcharge levels that could generate substantial revenue over a four-year period.

Amid reports of soaring bank profits in 2025, the TUC’s General Secretary, Paul Nowak, expressed concerns over escalating bills for consumers juxtaposed with burgeoning bank bonuses, emphasizing the need for a fairer tax system for financial institutions.

Positive Money’s co-executive director, Sara Hall, criticized the disparity between record profits and rising living costs, urging action to redistribute bank profits towards struggling households and businesses. The organization called on policymakers, including Andy Burnham, to implement policies that prioritize public interests and restore trust in the government.

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