Chancellor Kwasi Kwarteng has been branded “shameful” for drawing up plans to scrap a cap on banker bonuses in the middle of the cost of living crisis.
The EU measure limits annual payouts to twice a banker’s salary.
But reports say Mr Kwarteng may ditch it to boost the City of London’s competitiveness post-Brexit.
The cap still means a banker on a salary of £1million can pocket £2million on top of that in bonuses.
But Mr Kwarteng, who worked as an analyst in financial services, is said to have told City executives last week: “We need to be decisive and do things differently.”
However, TUC general secretary Frances O’Grady said: “Bonuses in the City are already at a record high.
“While executives rake it in, millions are struggling to keep their heads above water.
“The Chancellor’s number one priority should be getting wages rising for everyone – not boosting bonuses for those at the top.”
Fran Boait, executive director at the group Positive Money, said: “Gifting bankers uncapped bonuses at a time when millions of households are choosing between eating and heating is beyond tone deaf – it’s shameful.”
Luke Hildyard, executive director of think-tank High Pay Centre, said: “Removing the cap would be a pro-rich ideological measure that sends a depressing message about who [Ministers] listen to and think about when making economic policy.”
Sharon Graham, general secretary of the Unite union, said: “When millions are struggling to feed their families and keep lights on, the Government’s priority appears to be boosting the telephone-number salaries of their friends in the City.”
The Treasury said it would not comment on speculation ahead of “fiscal events”, with the Chancellor set to deliver an emergency mini-Budget next Friday.
