The scrapping of bankers’ bonuses cap comes as one million children are in poverty according to a study, published by the Joseph Rowntree Foundation (JRF).
The Financial Conduct Authority (FCA) and Bank of England’s Prudential Regulatory Authority (PRA) confirmed the ending of the cap, which limits bonuses to twice base pay for employees of banks, building societies and investment firms.
Bankers’ bonuses
On the scrapping of the cap Paul Nowak, the general secretary of the TUC said: “This is an obscene decision. City financiers are already enjoying bumper bonuses. They don’t need another helping hand from the Conservatives. At a time when millions up and down the country are struggling to make ends meet – this is an insult to working people. [Prime minister] Rishi Sunak has shown once again that he is more interested in feather-nesting the super-wealthy than helping struggling families. Rampant inequality will do nothing to boost growth or competitiveness – it will just hold our economy back.”
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David Osland wrote: “Two news stories stand out for me today. The first is that Tories plan to lift the cap on bankers’ bonuses. The second is that a million kids in this country live in destitution.”
Poverty
More than one million children experienced destitution last year – meaning their families could not afford to adequately feed, clothe or clean them, or keep them warm.
JRF’s chief executive, Paul Kissack, criticised the government for in effect ignoring the rise in destitution. “The government is not helpless to act; it is choosing not to,” he said. “Turning the tide on destitution is an urgent moral mission, which speaks to our basic humanity as a country, and we need political leadership for that mission.”
Frances Ryan reports in the Guardian that: “3.8 million people in the U.K. are now officially destitute – more than double five years ago. It is a Victorian scandal for modern Britain, where Tory policies have left millions to beg for toilet roll and a warm meal.”
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