Stockton South MP James Wharton has hit out at Direct Line after it announced bosses could be in line for substantial bonuses

Churchill, a member of the Direct Line Group, a subsidiary of the Royal Bank of Scotland Group (RBS), plans to axe 890 jobs around the country as the company looks to save £100m – but Teesside is taking the greatest hit.

Yesterday, it was reported that Direct Line could hand out multi-million pound share bonuses to bosses when it floats on the stock market.

The potential windfalls could create a backlash amid public anger over pay at partnationalised banks, while it may also anger staff as Direct Line cuts jobs.

Stockton South MP James Wharton believes the move will cause additional distress for the hundreds of workers facing redundancy from the group. He said: “At a time when staff at the Stockton office are facing job losses, this move will cause additional anguish and concern when people could be receiving huge bonuses.

“Given that, it could give staff the opportunity to make Direct Line work with staff on Teesside to ensure that they receive the best possible deal and support for all those affected.”

When the announcement was made to workers at the Stockton office, managing director Darrell Evans assured staff they would receive as much support as possible from the company.

The group, which employs 15,000 staff in the UK, is planning the redundancies under plans to make £100m of cost savings by the end of 2014.

Frances Browning, a spokeswoman for Direct Line, said yesterday: “We have just started a consultation process and we will be working closely with employment representative bodies to try to help staff find alternative work.

“It is worth remembering that the level of bonuses is all speculation at the moment.

The full details will be announced when the company is floated on the stock exchange.”

RBS, which is 82 per cent owned by the state, revealed plans to spin off Direct Line on Friday.