Taxpayers benefit from Lloyds dividend

Lloyds Banking Group has paid its first dividend to shareholders since it was bailed out in 2008, a total of £535 million.

In what Chancellor George Osborne has called a ‘major milestone’ for the British economy, the Treasury’s 23.9% stake in Lloyds will pay out £130 million.

Mr Osborne said: ‘This is good news not only for taxpayers, who will get at least another £100 million from the dividend, but also for millions of savers who hold Lloyds shares or have money invested in Lloyds through their pensions.

‘Thanks to the strengthening economy and the turnaround at Lloyds, we have already recovered almost £8 billion of taxpayers’ money, reducing our shareholding below 24%.’

Lloyds was given permission to pay this dividend by the Bank of England, after their improved profits of £7.8 billion were reported, up from £6.2 billion in the previous year. The bank will pay a dividend at 0.75p per share.

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