Virgin Money has told the majority of its staff they will receive a £1,000 one-off bonus to help with the soaring cost of living.

The banking group said all of its employees who are paid £50,000 a year or less, which represents 78% of its workforce, will be eligible.

Around 6,000 people will receive the windfall as part of their August pay packet.

In an internal memo seen by the PA news agency, chief executive officer David Duffy explained the rationale behind the move.

“The increase in the cost of living is on everyone’s minds, whether in political circles, in the media, or in the local supermarket,” he said.

“It’s also been part of many conversations among the leadership team because we know that many colleagues are experiencing additional pressure on their finances.

“This has been echoed in what you’ve told us in Pulse surveys, in our colleague engagement sessions, and other forums including discussions with our trade union.”

Mr Duffy said the group has monitored “the situation closely” and decided now is the right time to offer more financial support.

It is the latest bank to hand a one-off bonus to staff amid the soaring cost of living, with Lloyds announcing a similar £1,000 payment to its employees last month.

Caren Evans, national officer at Unite, the union representing the bank’s workers, said: “Unite has secured the £1,000 payment following a campaign to show Virgin Money UK how the increases to the cost of living is hitting the overwhelming majority of its staff.

“The union will now continue to campaign to secure a consolidated pay increase for the whole workforce to ensure that all wages increase in line with inflation.”