Pay rise for staff after hike in Virgin profits

Lender Virgin Money has revealed a 10% pay rise for the majority of its 7,500 staff as it notched up a 43% hike in annual profits thanks to surging UK interest rates.

The group said it is giving most workers a rise of around 10% on average to help them cope with soaring inflation, which comes on top of a £1,000 cost-ofliving payment in August.

The pay hike will be made in two instalments, the first in January and the second in July, with staff being paid between 9% and 11% extra in total.

The company said that alongside the staff pay boost, it has launched a cost-of-living hub to help offer support to customers in financial distress, but said it has not yet seen signs of an increase in borrowers falling behind with their repayments.

The lender stressed it is monitoring its customer base and has set aside £52m to cover borrower defaults with the UK facing a lengthy recession.