Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

BonusesFinancial servicesLatest NewsPay & benefits

Tesco Bank agrees £1,250 cost-of-living pay hike for employees

by Adam McCulloch 20 Jan 2023
by Adam McCulloch 20 Jan 2023 Photo: Shutterstock
Photo: Shutterstock

Retail lender Tesco Bank has agreed a £1,250 pay hike on a full-time equivalent basis, to help with the increased cost of living. 

More than 90% of the bank’s staff (about 3,500 employees) are eligible for the pay hike with those who qualify receiving it in their pay packet for January.

The uplift to salaries, which followed talks between Tesco Bank and Usdaw and Unite trade unions, is in addition to the bank’s annual pay review which will follow in May.

Daniel Adams, Usdaw national officer, said: “As the cost of living crisis has deepened, Usdaw has continued to engage with Tesco Bank on what can be done to support employees through this incredibly difficult time. As a result, and following challenging yet constructive negotiations before Christmas, we were pleased to be able to agree to a £1,250 uplift to salaries ahead of the normal pay review in May.

Pay awards January 2023

Pay awards unlikely to keep up with inflation in 2023

Pay trends January 2023: Median holds steady at 5%

Real-terms pay falls by 2.6% but inactivity slows

“Not only is this a welcome step but, given this is a permanent increase rather than one-off payment, it will also flow through into other elements of the reward package, including pensions and bonus.”

Tesco Bank chief executive Gerry Mallon said: “The rising cost of living is having an impact on households across the country, and we’ve been listening to colleagues about how this is affecting them.

“The salary increase aims to provide sustainable, long-term support to colleagues, including our contact centre colleagues who show great commitment to helping our customers in the current economic climate.”

Tesco Bank is one of the last of the major banks to offer a cost of living payment. It follows Lloyds Banking Group, which decided to offer a minimum pay hike of £2,000 for its staff in the UK last November, and Natwest, which provided a one-off payment of £1,000 for all 39,000 UK employees in junior and junior management positions.

NatWest also last month announced its annual pay offer for 2023, which comprises an increase of at least £2,000 per year for UK members of staff, depending on individual performance, to take effect from 1 April.

Other banks to have made cost of living payments include HSBC, Santander, Barclays, Virgin Money, Nationwide, Co-operative Bank, Metro Bank, Monzo and TSB.

According to figures released this week by the Office of National Statistics (ONS), the average pay in the UK rose by 6.4% between September and November 2022 compared with the year before but because of inflation, wages fell in real terms by 2.6%.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

The ONS figures also found that the gap between public and private sector pay was at a record high with private sector pay rising by 7.2% annually in the three months to November. Compared with this, public sector pay only rose by 3% during the same period.

Latest HR job opportunities on Personnel Today


Browse more human resources jobs

Adam McCulloch

Adam McCulloch first worked for Personnel Today magazine in the early 1990s as a sub editor. He rejoined Personnel Today as a writer in 2017, covering all aspects of HR but with a special interest in diversity, social mobility and industrial relations. He has ventured beyond the HR realm to work as a freelance writer and production editor in sectors including travel (The Guardian), aviation (Flight International), agriculture (Farmers' Weekly), music (Jazzwise), theatre (The Stage) and social work (Community Care). He is also the author of KentWalksNearLondon. Adam first became interested in industrial relations after witnessing an exchange between Arthur Scargill and National Coal Board chairman Ian McGregor in 1984, while working as a temp in facilities at the NCB, carrying extra chairs into a conference room!

previous post
Warnings over workers’ rights as Retained EU Law Bill proceeds
next post
Minimum wage uplift creates problems for Ministry of Defence

You may also like

Next to improve wage-setting transparency after shareholder pressure

16 May 2025

Ofgem workers ballot for strike action

2 May 2025

What will reward look like in 2035?

28 Apr 2025

NI increase has not caused ‘knee-jerk reaction’ in...

23 Apr 2025

Post-pandemic starters seek more pay for on-site working

10 Apr 2025

Maisie Adam to host Employee Benefits Awards 2025

3 Apr 2025

Most businesses will need to adjust wages in...

28 Mar 2025

‘British people too polite to talk about salary?...

28 Mar 2025

Senior HR pay rising faster than junior roles

28 Mar 2025

Employee Benefits Awards 2025 shortlist revealed

24 Mar 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+