Lloyds Boss Accepts Concern Over Use of Staff Data in Pay Talks

Published: 18 February 2026. The English Chronicle Desk. The English Chronicle Online

The boss of Lloyds Banking Group has admitted that staff concerns over the bank’s use of employee data during pay negotiations were real and must be taken seriously, following months of backlash over the controversial practice. Chief Executive Charlie Nunn addressed employees at a recent town hall meeting, acknowledging that the use of staff banking information during internal pay talks “obviously has created some concern” and confirming that the bank is reviewing how it handles such data in future.

The controversy stems from revelations late last year that Lloyds analysed aggregated and anonymised transaction and savings data from the accounts of around 30,000 to 36,000 employees, comparing it with broader customer patterns. The bank said the exercise — carried out as part of negotiating a multi‑year pay deal with unions late in 2025 — was intended to better understand how its lowest‑paid staff were coping financially compared with the general public during the cost‑of‑living crisis.

However, the decision to use employee account data raised sharp criticism from some staff, unions and privacy advocates, who argued that even anonymised analysis of personal financial data felt intrusive and could undermine trust between employees and the employer. One union representative described concerns that the data might be used to justify lower pay offers, a claim Lloyds has denied, while others warned the bank risked creating a culture akin to “Big Brother” surveillance.

In response, Mr Nunn told staff that while recognised unions involved in the talks had been comfortable with the data’s use at the time, the bank was listening to feedback and must “look at the lessons learned” from the episode. He stopped short of launching a formal internal investigation but said Lloyds intends to reflect on how similar data practices are approached in future negotiations.

The row has also drawn regulatory attention. The Information Commissioner’s Office (ICO) said it was making inquiries into whether Lloyds’ use of employee account data raised issues under the UK’s stringent data protection laws — a matter that could influence how employers across sectors approach staff data in contexts beyond direct operational needs.

Some unions that supported the eventual pay deal — which delivered an average **7 per cent to 9 per cent increase for lower‑paid staff after hard negotiations — argued the insights from the data were helpful in shaping fair outcomes. Others, especially smaller or unrecognised unions, felt strongly that employees should have been consulted first or given clearer transparency about how their financial information was being used.

Privacy and employment law experts say the case highlights wider challenges as employers increasingly gather and analyse internal data. Even when aggregated and anonymised, such practices can evoke concerns about consent, fairness and the balance of power between employers and staff — especially when the information relates directly to employees’ lives and livelihoods.

Lloyds has insisted it acted within legal boundaries and emphasised its commitment to fair pay and progressive employment practices. But with staff trust shaken and regulatory scrutiny building, the bank’s handling of employee data during pay negotiations is likely to prompt discussions and potential guidance about data ethics in the workplace.

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