City watchdog gives workers £1,000 towards cost of living

THE City watchdog is to hand staff a £1,000 cost of living payment after pay reforms led to strikes at the regulator earlier this year.

The Financial Conduct Authority told employees yesterday that those earning under £60,000 will receive a one-off payment of £1,000 next month, The Daily Telegraph understands. Those earning between £60,000 and £60,500 will receive £500.

The move is the latest example of organisations boosting pay to help staff cope with spiralling food and energy bills. Banks including Lloyds and Natwest, and other City firms such as Aviva and Abrdn, have put in place similar measures in recent months.

It comes after a major fall out earlier this year between staff at the FCA and management over controversial pay reforms, which were championed by chief executive Nikhil Rathi.

The idea of a one-off cost of living payment has been pushed by the FCA’S “staff consultative committee” in recent weeks, according to a source, suggesting bosses at the regulator are seeking to mend relations with employees.

However, it is understood that the one-off payment is a response to the deteriorating economic environment rather than any concerns surrounding the pay reforms.