By Max Clarke
Bonuses paid out in the financial sector have again hit £14bn for the 2010-11 fiscal year, renewing fears of a return to pre-recession practices in the UK’s bloated financial sector.
“City bonuses are still far too high and the incentives for risky and damaging decisions far too great, especially when bankers know that taxpayers will have to pick up the tab,” said trades union chief, Brendan Barber.
Bonuses paid out to workers in the rest of the economy diminished marginally, to £21bn, angering trades unions.
“The Chancellor's austerity message has failed to reach the City, where a small clique of super-rich bankers has grabbed 40 per cent of all bonuses paid out in the UK,” barber continued.
Public Sector workers, who comprise 22% of the UK workforce, received just 1.5% of total bonus payments, leaving the remaining 97% to be shared out chiefly by London’s City.
While the £14 billion sum- which translates to an average of £12,500 per head in the industry- accounts for 40% of the UK’s total bonus payments, the figure remains well below the pre recession peak of £19bn, or £17K per head.
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