UK bonus culture spreads as payouts exceed £44bn
City boys aren't driving growth but are still being paid by far the most
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
You are now subscribed
Your newsletter sign-up was successful
The total amount of money paid as bonuses by British companies surpassed pre-crash levels for the first time last year, according to official figures.
Data from the Office for National Statistics shows that British businesses paid out a massive £44.3bn in the 12 months to March, a rise of 4.4 per cent compared to the previous year.
In cash terms, this beats the record that was in place before the 2008 financial crisis led big banks in the City to reduce payouts.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
While finance and insurance companies remained the biggest contributors to bonus expenditure, the Daily Telegraph says this time around despite the overall rise "it isn't the City boys who are cashing in".
Other sectors such as IT and communications services have emerged as the biggest drivers of growth over the past decade, the paper adds.
The amount paid to the average finance professional was lower in the most recent period, at £13,400, than the record high of £15,000 paid in 2013. However, the average for the sector still dwarfs most others.
In contrast, people working in the health and social sector got virtually no variable top-up to their pay packet on average.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
The City's bonus culture "was widely blamed for fuelling the credit boom and financial crisis by rewarding bosses and traders with cash for short-term results," says The Guardian.
With recent evidence showing that payouts do little for companies in the long run, big firms – including advertising giant WPP and BP – have faced shareholder revolts over the amounts awarded to top executives.