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Results by nature of income and expense

Administrative expenses – staff costs

In the tables below, income and cost totals excluding, where appropriate, the results of The Woolwich, related integration costs, restructuring costs, the results of former BZW businesses and the write-down of leases are shown to assist in the analysis of the ongoing business performance.
2000 1999 1998
£m £m £m
Salaries and accrued incentive
payments 2,559 2,387 2,211
Social security costs 178 190 173
Pension costs (31) 38 37
Post-retirement health care 1 15 17
UK profit sharing 96 80 88
Other staff costs 416 347 285
3,219 3,057 2,811
Included above:
The Woolwich 42 – –
Integration costs 1 – –
Restructuring charge 171 192 –
Former BZW businesses – – 22
Excluding The Woolwich,
integration costs, restructuring
charge and former BZW businesses 3,005 2,865 2,789


Staff numbers
2000 1999 1998
Retail Financial Services** 49,900 46,100 49,100
Barclaycard 3,900 3,600 4,000
Corporate Banking 9,700 11,400 11,500
Barclays Capital 4,300 4,000 4,400
Barclays Global Investors 2,100 1,700 1,500
Other operations 4,900 7,100 7,600
Head office functions 500 400 400
Businesses in Transition – – 100
Staff numbers (period end)* 75,300 74,300 78,600
* Staff numbers do not include temporary and agency staff of 4,800 (31st December 1999 3,600, 31st December 1998 4,000) whose costs are included in staff costs.

** Staff numbers also exclude 1,000 UK regulated sales force and field sales managers (31st December 1999 1,000) and 1,100 administrative staff (31st December 1999 1,300) whose costs are borne within the long-term assurance fund.

Of the 75,300 staff at 31st December 2000, 58,200 (including 1,200 in the Channel Islands and Isle of Man) were based in the UK, 4,400 in other EU countries, 2,700 in the United States and 10,000 in the Rest of the world.
* Including 6,500 in respect of The Woolwich

Staff costs

Staff costs excluding the restructuring charge and costs relating to The Woolwich increased 5% to £3,005m. Salaries and accrued incentive payments rose by 7% largely reflecting increased performance related payments in Barclays Capital and BGI. Excluding performance related payments, salary costs across the Group were flat compared with 1999. In Retail Financial Services, Corporate Banking and Service Provision savings from job reductions offset the impact of the annual UK pay award.

Pension costs include a £74m credit (1999 £nil) in respect of the Group’s main UK schemes following a review of the assumptions relating to the surplus and the continued nil contribution.

In 1999 staff costs, excluding the restructuring charge and costs in relation to former BZW businesses, rose by 3% over 1998. The increase reflected higher performance related payments in Barclays Capital in line with improved profitability.

Underlying staff costs, excluding performance related payments, were slightly below 1998 levels.

Staff number reduction in 2000

Excluding The Woolwich, staff numbers decreased by 5,500 to 68,800, primarily as a result of continuing job reductions in the UK. The reduction in staff numbers relating to the 2000 restructuring programme amounted to 2,700 with a further 1,500 attributable to the 1999 programme where the notice process was underway at the end of 1999. The reduction in Corporate Banking staff numbers includes 700 as a result of the sale of Dial. Staff numbers also reduced by a net 600 as a result of outsourcing and other movements.

In addition to the 4,200 staff who have left the Group in 2000 under the 2000 and 1999 restructuring programmes, a further 2,100 staff were in the process of being served notice at 31st December 2000 and are covered by the 2000 restructuring charge of £171m (total jobs affected 4,800).

The increases in Barclays Capital, Barclays Global Investors and Barclaycard staff numbers reflected increased business volumes and investments in new activities.