Previous Year Questions

Question :

Directions : Read the following passage carefully and answer the questions that follow.

The financial condition of British bank workers has become a ____(X)___ concern, highlighting a stark disparity between frontline employees and top executives. While banks remain among the UK's most profitable institutions, many of their employees, especially those in lower or customer-facing roles, are facing rising financial insecurity, cost-of-living pressures, and mounting workplace stress. A recent union survey at Lloyds Bank painted a troubling picture: nearly one-third of respondents reported financial struggles, with 22% frequently running out of money before payday. Despite working in a sector known for wealth, nearly half of these employees earned ≤25,000 or less per year. This financial tightrope is especially jarring when compared to the ≤6.3 million salary of Lloyds' chief executive, revealing an internal pay gap that continues to widen.

For many, basic living expenses are becoming increasingly difficult to cover. Rising rent, transport costs, and food prices have left workers stretching their budgets just to get by. In an attempt to ease this pressure, banks such as HSBC, Virgin Money, and Lloyds issued one-off payments ranging from ≤1,000 to ≤1,500 for their lower-paid staff. While helpful in the short term, these payments have been criticized as temporary fixes that fail to address deeper issues like stagnant wages and job insecurity. Mental health challenges have also come into sharp focus. According to Mental Health First Aid England, 83% of finance sector employees have considered changing jobs due to stress, and nearly a third have seriously thought about leaving the industry altogether. Employees cite heavy workloads, understaffing, and unrealistic expectations as key stressors. Despite advances in automation and digital tools, work intensity appears to be increasing rather than easing.

These pressures are made more frustrating by the contrast with executive pay. NatWest's CEO was recently approved for a compensation package potentially worth ≤7.8 million annually. Standard Chartered's CEO faced backlash from shareholders over a proposed package that could boost his pay to ≤13.1 million. Such figures fuel discontent among workers, many of whom are unable to save or plan for the future, let alone enjoy the kind of financial freedom granted to senior leaders. Pension contributions have also emerged as a critical concern. Over the past three years, UK company contributions to employee pension schemes have dropped by 16%. This decline raises concerns about long-term financial stability. If left unaddressed, it could set up a generation of bank workers for an uncertain retirement, even after decades of service in one of the country's most profitable sectors.

This deepening divide is not just about money - it's about morale, motivation, and fairness. As bank profits and shareholder returns soar, the people who keep the industry running are being left behind. To reverse this trend, banks must rethink compensation structures, improve mental health support, and commit to more equitable pay distribution. Without such action, they risk losing not just talent but trust. In conclusion, the condition of British bank workers is a reflection of broader systemic inequalities. It is a call to action - not only for banks but for policymakers and stakeholders - to summon the courage to implement lasting changes. Ensuring that all employees, not just executives, benefit from the sector's success is not just fair - it's essential for the long-term health and sustainability of the industry.

The increasing dissatisfaction among bank employees is also beginning to impact staff retention and the overall reputation of the financial sector. High turnover rates, particularly among entry-level and customer service roles, have placed additional pressure on remaining staff, further intensifying workload-related stress. Moreover, younger professionals, increasingly driven by values of fairness and purpose, are reconsidering long-term careers in finance. This talent drain threatens not only operational efficiency but also innovation and customer service quality. In an industry built on trust and reliability, failing to address these internal disparities risks undermining public confidence and investor sentiment over time.

Which of the following is the most appropriate to fill the blank 'X' as given in the passage?