Lloyds Faces Scrutiny Over Use Of Staff Bank Data In Pay Negotiations

One of the United Kingdom’s leading lenders has come under fire for using data from the bank accounts of more than 30000 employees as part of its salary negotiation process. Lloyds Banking Group examined the saving and spending patterns of its lowest paid staff and compared these with the financial resilience of the wider population during its pay talks for 2026 and 2027. This information was presented to union representatives in an aggregated and anonymised form during negotiations, raising concerns that the bank may be leveraging staff data inappropriately.

Critics argue that Lloyds accessed employee accounts without explicit consent and for reasons not directly related to employment. Mark Brown, general secretary of the Affinity union which is not formally recognised by Lloyds, told members these actions gave the impression of unwarranted surveillance. Brown suggested the Information Commissioner may need to determine if this constitutes a major breach of data protection rules, noting that holding an account with the bank does not give Lloyds unrestricted access to employee data.

Lloyds countered that it complied with all relevant data regulations and maintained that all figures were aggregated and fully anonymised throughout the process. The bank stated the practice was in keeping with industry norms for data-driven decision making. Lloyds also denied suggestions that the exercise was used to justify restricted salary increases for junior staff.

The pay negotiations resulted in average salary rises of seven to nine percent for junior employees, in an agreement approved by members of the Accord and Unite unions. The minimum starting salary for the lowest grades is set to increase to £26200 next year and to £27400 in 2027. Lloyds highlighted its multi year pay offer as competitive and designed to provide certainty and support for its workforce, emphasising a commitment to fair and progressive pay.

Since 2022, increases to base pay for Lloyds’ personnel have totalled more than £1.1 billion. The Information Commissioner’s Office confirmed it engages regularly with banks on data protection matters, reminding organisations to balance legal obligations with employee rights when conducting any workplace monitoring.

Lloyds Banking Group, which comprises brands such as Halifax, Bank of Scotland, MBNA and Scottish Widows, is currently implementing a multi billion pound transformation under Chief Executive Charlie Nunn, centring on digitisation, cost control and expansion of wealth management services.