Barclays slashes IT contractor rates by 10%

Barclays yesterday confirmed to ContractorUK anonymously sourced reports that it has downgraded the pay of IT and all other contractors at its US and UK divisions by 10 per cent.

Issuing such “contingent workers” in IT with the third ‘take it or leave’ rate cut in as many years, the company told them to reflect the reduction by April 7th or forfeit their contract.

It blamed the ultimatum on the need to cut costs, but a Barclays spokeswoman declined to say if the few thousand workers affected were part of the 12,000 it plans to shed to make savings.

The spokeswoman would only say: “While Barclays remains committed to paying competitively, we have reviewed our contractor rates as part of our ongoing cost management programme.”

The move comes in the same month that temporary IT workers at the Office of National Statistics were also asked to cut their rates -- by at least six per cent -- if they want to retain their contracts.

But the Barclays’ cut is unique as it represents the first time in 2014 that a bank has squeezed IT contractors, whose demand is just below the 32-month high it hit in the final quarter of last year.  

Royal Bank of Scotland was this month rumoured to have cut rates for its temporary staff, but a RBS spokeswoman told CUK that IT contractors have not been subjected to any blanket pay reduction.

Editor's Note: Further Reading - Contractors' Questions: What to do if my rate gets cut?

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Written by Simon Moore

Simon writes impartial news and engaging features for the contractor industry, covering, IR35, the loan charge and general tax and legislation.
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