British insurance major Aviva is the newest financial services firm to announce monetary support for its employees to help them deal with soaring inflation.
Speaking to Bloomberg TV, Aviva CEO Amanda Blanc revealed that last week, around 7,000 of the insurer’s staff were informed that they will be offered payouts of up to £1,000.
The payout scheme is valid for Aviva’s lowest-paid employees.
“Last week, we announced a £1,000 payout to those that are earning under £30,000,” Blanc was quoted by Bloomberg as saying.
“That is tapered up to £35,000.”
The payout is aimed at helping employees deal with UK inflation, which reached 9.4% in June, a new 40-year high as energy and food prices continued to rise, worsening the cost-of-living crisis.
According to the Bank of England’s estimates, inflation will reach its peak of 13.3% in October 2022 and remain high for the most part of the year.
Aviva’s announcement comes as the insurer reported a 14% increase in operating profits during the first half of 2022.
The insurer also said it plans to start a new share buyback programme months after returning £4.75bn to investors.
Separately, the firm announced that it acquired Succession Wealth for an undisclosed sum.
“The acquisition significantly enhances Aviva’s presence in the fast-growing UK wealth market and expands Aviva’s ability to offer high-quality financial advice to a significant number of its 6 million pension and savings customers without an existing adviser,” the insurer’s statement read.