The cuts at Lloyds TSB sites in Scunthorpe and Dudley, and Hbos offices in Newcastle and Romford, take the total number of job losses at the group - 40% taxpayer-owned - to around 30,000 in three years.

Ged Nichols, general secretary of the Accord union, says: "LBG shedding almost 1000 more jobs on top of the 30,000 that have been lost since Hbos was taken over just three years ago is devastating news for the employees who will be affected and the communities in which they live."

David Fleming, Unite national officer, adds: "Unite will be holding discussions with the bank with the objective of minimising the need for job cuts following this further restructuring."

Today's cuts are part of a previously announced plan to shed 15,000 jobs, saving £1.5 billion per year in operating expenditure. So far, the bank has terminated 3800 of the total target figure.