Monzo gives its lowest-paid employees £1,000 cost of living payment

Digital bank Monzo is giving staff who earn less than £40,000 per year a one-off payment of £1,000 to help them cope with the cost of living.

Read also: Klarna is set to make second round of job cuts

There are multiple companies around the UK now that are offering similar packages.

In August, Virgin Money offered staff a one-time bonus of £1,000, while thousands of Rolls-Royce staff have been offered a £2,000 bonus payment.

Lloyds Bank, MoneySupermarket and Taylor Wimpey are among other large UK businesses that have introduced measures to support staff with rising living costs.

“We’re constantly reviewing the situation to make sure that we’re doing what we can,” Monzo CEO TS Anil told LinkedIn News.

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Monzo’s announcement follows the recent measures proposed by the government to help with rising living costs, which include reversing the National Insurance Rise and cutting Income Tax.

But the government was recently U-turned on plans to cut the highest rate of income tax (45% for earnings over £150,000) after being accused of favouritism towards higher earners.

Monzo has not revealed just how many of the company’s 2,500-strong workforce are eligible for the bonus.

Bic companies do well in similar steps. However, according to the FSB, SMEs employ 16.3 million in the UK.

If the UK ends up in recession by the new year, as many are predicting, chances are small businesses will have less cash available to support staff, meaning many who are employed by SMEs might miss out on these types of bonuses.