The banking and finance sector accounted for £700m of the increase, but a number of businesses across the economy reported they had chosen to defer bonuses usually paid in March until April.
The majority of large bonuses are usually paid between December to March, a period known in financial services circles as the ‘bonus season’. But in March 2013, bonus payouts decreased by £700m compared with March 2012.
The 50p tax rate for the UK’s highest earners was cut to 45p in April, a policy that has been described as “David Cameron's tax cut for millionaires”.
Chris Leslie, shadow financial secretary to the Treasury, said: “Bonuses soared in April as bankers delayed their payouts to take advantage of the 50p tax cut. Millions of pounds of revenue will have been lost as a result, at a time when people across the UK are facing a cost of living crisis.”
Sector breakdown
According to ONS figures, bonuses across the UK economy increased by 1% to £36.9 billion in the year to 31 March 2013.
The financial and insurance services industry offered the largest rewards, with £13 billion paid out in the year to March 2013 – the same as in 2012. The average bonus payment for an employee in this sector was £11,900.
Other high paying industries were mining and quarrying, where employees took home an average of £6,700 each, and information and communications, with an average £4,400 payout.
The bottom three industries for bonus payments were health and social work, education and public administration, where employees were awarded bonuses of less than £100 each.
