Virgin Money: cost of living £1,000 bonus explained, who is eligible - and other firms giving out payments

The banking group said around 78% of its employees will get the cash

Virgin Money has revealed it is handing out a one-off cash bonus to thousands of staff in an effort to help with the cost of living.

The news comes after experts warned that the cost of living could soar again this October despite many people already struggling to cope with bills and essentials.

However, Virgin Money has become the latest banking group to hand out a cost of living bonus to staff in an effort to help.

Lloyds also announced a staff pay boost last month.

Virgin Money said around 6,000 employees will receive the bonus in their August wage packet.

Which Virgin Money workers will receive the bonus?

The banking group said that workers who earn £50,000 a year or less will get the cash.

This is around 78% of the company’s employees.

Staff were told about the boost through an internal letter sent by the company.

The letter was written by chief executive officer David Duffy, who said: "The increase in the cost of living is on everyone’s minds, whether in political circles, in the media, or in the local supermarket.

"It’s also been part of many conversations among the leadership team because we know that many colleagues are experiencing additional pressure on their finances."

Duffy said various surveys taken by staff, as well as discussions, helped the firm’s management come to the decision.

Which other firms are giving out one-off cash payments?

Rising inflation means the price of everything is increasing.

Many consumers are left worrying about how they will be able to afford the next energy bill or food shop.

Virgin Money is giving out this one-off cash boost to staff, but it isn’t the only company that has decided to support its employees.

Last month, Lloyds Bank revealed 99.5% of its staff would also receive an extra £1,000 in their August wage packet.

Lloyds said all staff in its grades A to G will get the money this summer.

New customers are also getting free cash from the banking giant, which is offering out £125 to those who open a current account.

The National Living Wage also jumped up in April - so millions more will have received a £1,000 pay boost.

Morrisons has also agreed to raise workers’ pay wage last month.

The supermarket is boosting it to £10.20 an hour.

Some 80,000 store and manufacturing workers will receive the 2% rise from October.