Nine in ten Bank of England employees received bonuses last year, even as inflation exceeded the 2 percent target.
A total of 4,263 employees, accounting for about 90 percent of the workforce, received a bonus last year, the disclosures show. The highest payouts were between £15,000 and £20,000, with 34 staff members receiving rewards in this range.
Over 300 employees received a bonus between £10,000 and £15,000 and 1,733 were awarded between £5,000 and £10,000. In total, the central bank spent £23 million on variable compensation last year.
The revelations are likely to increase central bank control and leave it open to accusations of rewarding failure. Inflation has risen to a 40-year high in the past year, surpassing the Bank’s 2 percent target in May 2021 and reaching 9.4 percent in June.
July data, expected on Wednesday, are expected to show an accelerated price rise to 9.8 pc. and Threadneedle Street expects inflation to exceed 13 pc later this year.
Andrew Bailey, the governor of the Bank of England, was heavily criticized earlier this year telling employees not to ask for high wage increases because inflation had to be kept under control. Mr Bailey, who is not eligible for a bonus, made £597,592 last year.
Liz Truss, Secretary of State and frontrunner in the Tory leadership contest, said: she wants to review the mandate of the Bank of England in light of rising inflation.
The governor has defended the independence of the central bank but has told the chancellor, Nadhim Zahawi, that he is “open to review”.
Bank of England officials say the vast majority of staff are not concerned with monetary policy. The Bank of England declined to comment on its bonus policy.
The total bonus pot was the highest level in at least two years, the Observer first reported, although the number of employees has also increased.