UK to Scrap Bankers’ Bonus Cap in Competitiveness Push

Firms can lift the pay restriction from next week, PRA says
Regulator is reviewing whether deferrals are ‘proportionate’

The cap limiting bonuses for bankers will be lifted on October 31. — The cap limiting bonuses for bankers will be lifted on October 31.
Photographer: Chris Ratcliffe/Bloomberg

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By Katherine Griffiths

October 24, 2023 at 1:20 PM UTC

This article is for subscribers only.

The UK is going ahead with scrapping the cap on bankers’ bonuses, enforcing plans unveiled by Liz Truss’s government last year.

The cap limiting bonuses to a maximum of twice a banker’s base pay will be lifted from October 31, the Prudential Regulation Authority said on Tuesday.