Bank of England accused of hypocrisy over pay plans after telling public to avoid big raises


“Our reliance on quantitative easing has finally caught up with us. There should be no question of undermining the Bank’s independence, but that does not preclude a healthy and necessary review of its poor performance of late.

Details of the new salary review scheme are contained in the minutes of a meeting of the Bank’s Board of Directors, held on December 2, 2021.

Under an agenda item titled ‘New Performance and Salary Review Process’, the minutes read: ‘After two years in which performance ratings were suspended due to the Covid disruption , [the] The Court noted plans for a new approach to performance.

“The objective was to encourage quality feedback and constructive development discussions, as well as to provide a basis for compensation reviews. There would also be more emphasis on values ​​and behaviors.

End-of-year grades will also be introduced based on how employees should be monitored, which staff say is in line with “the most progressive companies”. The scheme follows an 8.9% rise in the number of employees earning over £80,000, between 2019/20 and 2020/21 – before Mr Bailey’s calls for pay moderation – according to figures reported yesterday.

Call to “think and reflect”

Appearing before the Treasury select committee earlier this week, Mr Bailey said: “I think people, especially those on higher incomes, should think and think about asking for big pay rises. “

Insisting that he was not ‘preaching’ on the issue and that it was up to companies to ‘make their own judgement’, he added that he had personally told the Bank not to give him a raise salary this year.

Last night Liam Fox, the former Cabinet minister who is calling for a parliamentary inquiry into the Bank’s handling of inflation, said: ‘Having looked away from inflation, there will be scrutiny of how how the Bank of England behaves in the future.

“I guess when they tell the rest of the Brits not to ask for a pay rise, they will apply the same rules knowing the public is watching like never before.”


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