The bank says the jobs will be shed over the next three years as it merges operations and wholesale functions across Lloyds TSB and HBOS.

Operational functions including payment and business services and banking are combining, while the wholesale division is bringing together its Lloyds TSB and Bank of Scotland businesses in England and Wales.

The latest set of cuts will raise the total number of jobs lost at the group to 7000 since January.

The bank says it expects at least 700 of the reductions will come through natural attrition. It has also announced plans to create 350 new roles during the merger process.

The UK bank has also moved to cut its temporary wage bill by forcing a 15% pay cut on IT contractors and shipping in cheaper labour from India.

Labour unions condemned the latest round of cuts and said they had received assurances from the bank that no "permanent operational roles" would be offshored.