Kensington says rivals need to consider bonuses

Kensington says rivals need to consider bonuses

More than one in four employees rely on bonuses at work to boost their take-home pay, according to analysis conducted for mortgage lender Kensington.

Government data shows 27.8 per cent of UK workers – the equivalent of 8.62 million employees – receive bonuses on top of their salary.

The bonus capital of the UK is not London, but Derby, where 46.9 per cent of employees receive bonuses. Inner London ranked just sixth behind Bracknell Forest, Milton Keynes, Windsor and Maidenhead and Cheshire East.

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Employees in Torbay and Middlesbrough were the least likely to receive bonuses. Just 14.1 per cent in Torbay do, compared with 15.6 per cent in Middlesbrough.

Men are more likely to receive bonuses than women – the analysis shows 34.7 per cent of male workers receive bonuses – compared with just 21.1 per cent of female workers.

Steve Griffiths, head of sales at Kensington, said: “This is not about multi-million bonuses but hard working people who rely on additional bonus payments as part of their total income.

“With the average house price now more than £200,000, it is hugely important for many people to find a lender that is able to consider all of their earned income, including bonus payments, when calculating how much they can afford to borrow.”

He previously told FTAdviser sister paper Financial Adviser that lenders need to do more to develop solutions for borrowers with complex incomes, as more than one in eight employees are expecting bonuses in the next 12 months.