A SCOTTISH bank has said it is to permanently increase pay for staff to help with the economic squeeze.

Tesco Bank has announced it is giving more than 3400 staff a £1250 pay increase, on a full-time equivalent basis, to help with the increased cost of living.

More than 90% of the bank’s workforce, which has a base in Renfield Street, are eligible for the increase which is effective from this month. 

The uplift to salaries, which followed discussions between Tesco Bank and both USDAW and Unite trade unions, is in addition to the bank’s annual pay review which will follow in May as normal.

Gerry Mallon, Tesco Bank chief executive, said: "The rising cost of living is having an impact on households across the country, and we’ve been listening to colleagues about how this is affecting them.

"That’s why we’ve taken action and awarded a permanent increase to base pay for the majority of our colleagues.

“The salary increase aims to provide sustainable, long-term support to colleagues, including our contact centre colleagues who show great commitment to helping our customers in the current economic climate.”