Economic Inequality

Lord Davies of Oldham Excerpts

Monday 10th February 2014 Lords Chamber

[Lord Newby]

My Lords, that is no doubt why we inherited such rosy economic circumstances.

[Lord Davies of Oldham (Lab)]

My Lords, the Minister used the graphic phrase, “making work pay for everyone”. It certainly pays for bankers, as Barclays tomorrow will announce another £2 billion in bonuses, following the £2 billion that it paid out last year. Since 2008, banks will have paid out, in accumulation, £80 billion in bonuses—£1,000 for every man, woman and child in this country. How can the Government talk about us all being in this together when there is such an obvious imbalance in the economy?

[Lord Newby]

My Lords, as the noble Lord will be aware, bonus levels in the City—although he finds them outrageously high—are now very much less than they were. There is a now a raft of domestic and EU rules in play that will reduce the extent to which bankers can take bonuses, except over a period and when bonuses are linked to the performance of the bank.