A CAP on bankers’ bonuses is set to be scrapped in what the TUC branded an “obscene decision” and “an insult to working people.”

Financial regulators announced today that the limit on annual payouts to 100 per cent of salary would be removed from the end of the month.

The Tories were slammed as “absolutely immoral” as the announcement was made as it emerged that one million children are living in destitution.

The Bank of England’s prudential regulation authority (PRA) said the bonus cap had been “identified as a factor in limiting labour mobility.”

Disastrous former chancellor Kwasi Kwarteng first revealed plans to change the EU-wide bonus rules a year ago.

TUC general secretary Paul Nowak said: “Rishi Sunak has shown once again that he is more interested in feather-nesting the super-wealthy than helping struggling families. 

“Rampant inequality will do nothing to boost growth or competitiveness — it will just hold our economy back. 

“At a time when millions up and down the country are struggling to make ends meet, this is an insult to working people.”

Momentum said the move was an “absolutely immoral and tone-deaf move from a party out of touch with ordinary people.”

A spokesman urged Labour to take the open political goal: scrap the two-child benefit cap and introduce new wealth taxes. 

Luke Hildyard, executive director of the High Pay Centre think tank said: “The UK already has more millionaire bankers than the whole of the EU put together, yet our economy is stagnant and our public services are in crisis.

“We can’t rely on the outsized incomes of a handful of super-rich bankers trickling down to lift slumping living standards for the wider population.”

Fran Boait, co-executive director at campaign group Positive Money, said the announcement reflects “yet another risky move in the government’s prioritisation of financial ‘competitiveness’ above public wellbeing.”

Unison general secretary Christina McAnea said it was “beyond belief” the Tories were reheating Liz Truss’s policies.

Shadow chief secretary to the treasury Darren Jones MP said: “When Truss says jump, Sunak asks: how high?

“At a time when families are struggling with the cost of living and mortgages are rising, this decision tells you everything you need to know about the priorities of this out-of-touch Conservative government.”

The Treasury said: “Decisions on remuneration in the banking sector are for the PRA as the independent statutory regulator.”