British banking major Barclays has announced a pay raise for its UK staff working in branches, consumer-facing and junior support roles.

From 1 August 2022, the lender’s 35,000 employees will receive a £1,200 hike in their annual pensionable salary.

The move brings forward part of the annual pay review, which is normally due to come into force in March.

“Barclays will continue to monitor the economic situation globally and consider our approach to pay in each country in the local context. Barclays’ annual pay review for all staff will take place in the near future, effective from March 2023,” the bank’s statement read.

Barclays’ decision comes in response to rising inflationary pressure on people who are struggling to pay their bills and demanding a pay raise.

The hike comes despite Bank of England (BoE) Governor Andrew Bailey’s pleas for restraint on wages.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The BoE is concerned that pay hikes will result in an earnings-price spiral that will prolong already high inflation even after the impact of the Russia-Ukraine war and the pandemic has faded.

Industry experts fear that the UK is in the early stages of an earnings-price spiral, a report from the Telegraph said.

In such a scenario, rising inflationary pressure will fuel demand for pay hikes and the businesses will then pass on the cost of wage raise to consumers.

In May, inflation in the UK stood at 9.1% and the BoE’s estimates suggest that it will rise to 11% by October.

Last week, Lloyds Banking Group announced a similar measure for its 64,000 employees.