Lloyds bonuses cause yet more controversy

CONTROVERSY continues to stalk Lloyds Banking Group as the banking group announces staff bonuses totalling £80m today.

Board members have already said they will forgo their payments and average payments will max out at £17,000.

Staff are graded in eight bands and it is understood that employees within bands five to eight will receive bonuses in cash.

Most of these workers are employed in branches and the average payout will be around £1,000.

Unions have offered their support by insisting that staff from the former Lloyds TSB deserve their bonuses as that side of the group remained in profit.

However, the news is unlikely to go down well with shareholders as it comes days after the Government increased its stake from 43% to 65% in the HBOS owner.

The move was made after the group was forced to turn to the Treasury for help following its takeover of troubled HBOS, which last week reported record losses of £11bn.

The taxpayer will insure toxic loans worth £260bn. The Government said that new lending from Lloyds will grow by £28bn over the next two years.