Fury over Lloyds pension freeze

Fury over Lloyds pension freeze

11 March 2014

Unite, Britain’s biggest union, has today (Tuesday 11 March) accused Lloyds Banking Group of exposing significant numbers of staff to pensioner poverty following confirmation that the taxpayer supported bank is to freeze pensionable pay from 2 April 2014.

In a disgraceful display of double standards, Lloyds CEO Antonio Horta-Osorio got a massive £568,000 pension contribution in 2013.

The bank has told staff today that it will freeze the final salary used to calculate the retirement income for 32,000 workers. It means the pensions of those workers in the final salary pension scheme will be based how much they are earning on 2 April 2014, regardless of how long they continue working or any pay rises they get at a later date.

Unite believes this is a disgrace particularly following the announcement that the CEO Antonio Horta-Osorio  was awarded £900,000 in shares this year in a move to sidestep the new EU rules which limit bonuses. Last week Lloyds also disclosed that it was giving out £12.5 million worth of shares to 10 senior bankers.

Unite national officer, Rob MacGregor said: “This is a disgraceful display of double standards. The taxpayer supported bank has doubled its profits, but it is attacking thousands of ordinary workers’ pensions while splashing out on huge bonuses for its senior bankers. Somehow the money runs out when it comes to the pensions of staff earning just £15,000 per year. The bank seems happy enough to expose low paid workers to the real threat of pension poverty in the future.”


Contact Ciaran Naidoo on 07768 931 315

Twitter: @unitetheunion, Facebook: unitetheunion1

Notes to editors: 

  • Unite is Britain and Ireland’s largest trade union with over 1.4 million members working across all sectors of the economy. The general secretary is Len McCluskey.