Those TSB staff who receive Universal Credit never got the full amount of the last cost of living payment in October because of the way the benefit works. If nothing changes, those same staff won’t get the full benefit of the cost of living payment in February 2023. It’s beyond parody that the very members of staff who need the cost of living payment the most to help them and their families during the worst economic crisis in living memory will not get it all. That’s a ludicrous state of affairs. There are hundreds of TSB staff who receive Universal Credit. According to the Joseph Rowntree Foundation, 2.2 million people in work receive Universal Credit.
The bank is proposing to make a further cost of living payment of £500 to grades B – D staff in February 2023. We think that’s a derisory amount of money especially when Lloyds and Halifax staff have received £1,500 over the last few months. Universal Credit is paid monthly and is based on individual circumstances each month. For every £1 a member of staff in receipt of Universal Credit earns more in February 2023 their benefit payment will be reduced by 55p. So, if we exclude tax and national insurance, then grades B – D members of staff on Universal Credit won’t get the full £500, they’ll get £225 instead. That doesn’t seem fair when those staff need the £500 the most. And why do TSB staff have to wait until February to get the money. The bank should be making those payments now.
Now TSB can’t do anything about the way Universal Credit is calculated but it can pay the cost of living payment in such a way that it avoids staff losing almost half of it.
We understand that some employers are giving their staff cost of living payments in the form of vouchers that they can use at the major supermarkets. Why can’t TSB do that? Equally, why can’t TSB use Spotlight to make the payments?
The bank should “strain every last sinew” to get this problem sorted before cost of living payment is made. £225 will make the cost of living crisis a little bit easier for those TSB staff on Universal Credit. That should be all the motivation the bank needs.
Members with any questions on this should contact the Union’s Advice Team on 01234 716029 (choose Option 1).
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