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Bank of England Launches Voluntary Redundancies to Fund Forecasting Overhaul

The central bank says departures will finance technology upgrades to address weaknesses flagged by Ben Bernanke.

Overview

  • The voluntary scheme is open until mid-January 2026, with departures expected to begin in March 2026.
  • Redundancy terms match existing policy: 10% of salary per year of service, capped at £150,000 or two years’ service, whichever is lower.
  • The Bank has set no numerical target for departures, may reject applications, and the Unite union says it will oppose any compulsory job losses.
  • Deputy governor Clare Lombardelli told MPs the cuts will create room for major technology investment in forecasting, described as the biggest since independence in 1997.
  • Officials cite budget pressure from reforms and tech work, with a three-year plan requiring efficiency targets that, if missed, could lead to higher charges on the financial sector.