British workers pocket £24 billion in bonuses

British workers received £24 billion in performance-related bonuses over the last 12 months according to the latest research from Birmingham Midshires.

Twenty-nine per cent of workers were the lucky recipients of a financial 'pat on the back' over the last 12 months, averaging £1,758 for each bonus beneficiary. Whilst the number of those receiving a bonus has doubled in the past twelve months (14% in 2006), the average bonus received has also decreased from £3,858.

A third (33%) of working men received a bonus over the past twelve months compared to a quarter (24%) of working women. The fairer sex also lost out when it came to the amount of bonus they received with men being paid almost double (£2,130 compared to £1,213). This disparity is likely to be compounded by the higher proportion of women in part-time work than men (18% versus 8%).

Over a third (39%) of Briton saved all or part of their bonus last year. Other items bonuses were spent on included holidays (12%), property (9%), buying gifts or lending to friends and family (8%) and a little luxury retail therapy (8%).

The top ten ways to blow our bonus:

1. Put into savings
2. Paid for a holiday / weekend break
3. Bought gifts / lent to friends and family
4. Bought luxuries for myself
5. Eating out
6. Made investments e.g. shares
7. Bought a car
8. Bought a new wardrobe
9. Bought a home entertainment system
10. Donated to charity

Jason Robinson, director of savings operations for Birmingham Midshires commented on the findings: “We all know that it can be extremely tempting to spend a large one-off payment but the research found that over a third of people are squirreling away their bonus and we think this is a good start. It is important to shop around for the best rate when deciding where to put your hard earned cash and choose a competitive savings account.”

As we approach City bonus season, Birmingham Midshires asked 2,000 people across the UK whether they had received a bonus over the past twelve months, how much it was for and what they spent it on.

Regional findings

Londoners were most likely to receive a bonus (33%) whilst Scots were least likely (22%).

Lucky Londoners received the highest bonus of any region (£2,770), whilst those in the

North of England obtained the least (£1,068).

Those in the Midlands and Wales were most likely to save their bonus (50%) whilst people in the North were least likely (28%).

Savvy Scots were more likely than any other region to invest their bonus (21%) whilst

Londoners were less disposed to put their hard earned perk into the stock market (9%).

More than one in ten (11%) Northerners used their bonus to pay off part of their mortgage, whilst Scots were least likely to use their money towards property (4%).

Those in the South of England were most likely to lend some or part of their bonus to friends and family, whilst Londoners were least likely (4%).