Two-year pay deal agreed for 2024 and 2025
Accord and Unite have signed an unprecedented two-year pay deal with Lloyds Banking Group, following a ballot which showed solid support from members in all grades. The agreement will give members and their families more certainty about their incomes between now and 2026.
Providing certainty and security was an important consideration in the negotiations. Although the headline rate of inflation is now falling, we know that the cost of food and other products is still going up. So, in July, once the final parts of the 2023 pay deal had been implemented, we started thinking ahead. The April 2024 pay review seemed a long time off, with the prospect of a long winter in between.
In view of the ongoing economic challenges that members face, the unions asked LBG for an early start to discussions on reward for 2024. When the group announced its results for the first half of 2023, we sent in a joint claim and talks began.
The proposals that emerged were published on 5th October 2023 and put to members in a consultative ballot run by Civica. Nearly 70% of Accord members voted in the ballot and almost four in five members voted yes.
A majority of members who voted in every grade were in favour of the deal and part-time workers were as likely to support as full-time workers. Members also responded positively across age groups and lengths of service.
However, the pay proposals apply to around 67,000 employees throughout Lloyds Banking Group, across virtually every role and every business area. No broad approach can pick up the pay concerns of every individual or address all the issues in specific businesses. We’re aware that some members have outstanding concerns and will continue to listen to those who voted against the deal, and to work towards satisfactory resolutions of their issues.
Ultimately, with this clear mandate from members, we were pleased to sign the two-year agreement with LBG. We believe the business responded positively to our pay claim and that the agreement builds on the progress we’ve made in recent years.
This agreement (including the £500 payment in December 2023) will increase average salaries for staff in Grade A by a further 14% by April 2025. And between March 2021 and April 2025, the minimum salary in LBG will have been increased by more than a third thanks to successive agreements with the unions.
Pay offer headlines:
- A minimum pay rise for a full-time member of staff of £1,500 (pro-rated for part time staff) effective from 1st April 2024
- For staff up to and including grade E, 4% will be paid where 4% is more than £1,500
- For staff in grades F & G, a budget of 3.5% will be distributed by managerial discretion
- There’ll be no pay matrix so staff with salaries above their grade mid-points will not be disadvantaged
- For staff above their pay range maxima, the awards will be paid as lump sums and not consolidated into salaries
- The minimum salary from 1st April 2024 will be increased to £23,500
- An additional £500 payment is on offer for staff in grades A – D (pro-rated for part-time staff) and will be awarded in December 2023 if these proposals are accepted
- The same awards will be applied with effect from 1st April 2025 (but not the £500 December payment)
- The minimum salary from 1st April 2025 will be £25,000
- Pay ranges 2024 – the range mid-points will be increased as follows: Grade A 6.5%, Grade B & C 5%, other Grades 2%
Member feedback
The feedback from members that has been shared with LBG is summarised here:
- Unhappiness that the ex-gratia payment of £500 in December 2023 will be pro-rated by working hours
- The treatment of people on Universal Credit in relation to the ex-gratia payment
- The £500 ex-gratia payment not being offered to Grade Es
- The ongoing issues of grading and reward for grade A & B colleagues in branches
- The position of long serving staff in grades A & B versus the salaries of new starters given the agreement to increase the new starter pay to £25k by 2025
- The need to review pay and grade for branch managers in grade C
- The need to review the Grade C pay and grades in contact centres where people have large numbers of direct reports
- The need for pay progression in grades D and E
- The factors to be considered by line managers for pay increases for grades F & G
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