Claire Cain was struggling to fulfill her lease final summer season. The 46-year-old financial institution cashier labored for Santander UK for 11 years earlier than a benign mind tumour, persistent ache and migraines compelled her to take depart. Two of her 4 kids moved again house to Dover in the course of the pandemic, including additional strain to her funds, simply as her 12 months of long-term sick pay ran out.
The only guardian stated she had no selection however to borrow cash from her 24-year-old autistic son earlier than Santander referred her to the Bank Workers Charity (BWC) in June.
“Being a single guardian for a short time was arduous, nevertheless it was tougher after I wasn’t getting any pay,” she stated. Cain approached the charity anticipating to get counselling she couldn’t in any other case afford. As an alternative, it provided her a £1,500 grant that saved a roof over her head, and helped her apply for incapacity advantages which she had not obtained earlier than.
With out the additional money, Cain stated: “I don’t know the place I might be, I’d most likely be homeless.”
Armed with £82m in reserves, the BWC has been a lifeline for 1000’s of financial institution employees like Cain, when job losses, sickness, home abuse or household tragedies have left them with nowhere else to show – conditions made even worse by the pandemic. It’s one in all quite a lot of hardship funds arrange by occupational teams – sailors, vicars, accountants, actors and musicians, engineers, for instance – to supply help to members who face destitution.
The BWC was launched by a gaggle of bankers in 1883 because the Financial institution Clerks’ Orphanage, to help the kids of frontline employees who had died or fallen ailing. Greater than 1,000 kids had been in its care by 1963, however 57 years and a merger later, it’s a a lot smaller operation with a wider remit.
As we speak, its 30 workers join employees with psychological well being, dependancy and debt administration companies, essential in the course of the pandemic.
Bankers have been working time beyond regulation for months, checking out mortgage and bank card holidays for struggling prospects, and arranging greater than 1.5m government-backed coronavirus business loans. All of the whereas, employees have confronted additional job insecurity of their very own, with Lloyds, The Co-operative Financial institution, TSB and Virgin Cash collectively asserting greater than 3,500 job cuts in 2020.
Whereas all bankers are eligible for the BWC’s companies, its grant programme – which provides emergency funding into the 1000’s of kilos – is often tapped by the lowest-paid in branches and name centres, who wrestle to make ends meet regardless of working for the UK’s largest banks.
All 5 of the UK’s largest – NatWest, Barclays, Lloyds, Santander UK and HSBC – advised the Observer they paid the nationwide residing wage, which is £9.50 per hour and £10.85 in London.
However there may be nonetheless a yawning hole between the financial institution’s highest- and lowest-paid workers. A 3rd at Lloyds financial institution, who had been polled in a union survey in 2019, stated they were struggling financially. It highlighted the disparity between its worst-paid employees, who earned a minimal of£17,510 in 2019, and the £4.7m pocketed by its outgoing boss António Horta-Osório.
In the meantime, Cain’s former employer, Santander UK, paid a minimal wage of £16,400 for workers outdoors London in 2019, 262 occasions lower than the £4.3m paid to its chief government, Nathan Bostock.
However the BWC stated banks’ pay insurance policies had been to not blame. “I don’t suppose it’s essentially that financial institution workers are underpaid,” stated Paul Barrett, BWC’s head of wellbeing.
Quite the opposite, he stated, the complete UK had suffered a decade of gradual wage progress, and households had been paying off additional debt that was extra available for years earlier than the pandemic. Barrett added that monetary pressure may even have been attributable to a partner dropping their job, or a failure to safe work underneath zero-hours contracts.
Though lots of BWC’s purchasers are a world away from the massive bonuses and champagne-sipping stereotypes hooked up to these working within the Metropolis, Barrett identified that this public notion of financial institution employees may additionally make it arduous for rank-and-file workers to hunt assist. “It might imply they take longer, and their monetary issues, as a consequence, are worse,” he defined.
Accord union chief Ged Nichols, who represents workers at Lloyds, TSB and Sainsbury’s Financial institution, praised the BWC for its work however stated the longer-term answer was to lift wages.
“Complete pay-related rewards for financial institution executives have far outstripped the progress in rewards for different staff. And workers advantages have been eroded over time, too. Like in so many different industries, the imbalances must be addressed via wage progress, not via charity,” Nichols stated.
Cain believes employers ought to take higher duty for his or her employees, particularly after years of service. “In the event that they sorted their workers rather a lot higher, you wouldn’t have the necessity to go to a charity for assist,” she stated.
Commenting on Cain’s case, Santander stated it had provided the utmost help given her size of service, together with full pay for six months, adopted by half pay for the ultimate six months.