The dividend income, derived from the government’s stake in the bank which currently stands at around 9.2%, takes the amount received from Lloyds since its rescue in 2008 to more than £16.8bn.
Since extending a £20.5bn lifeline to Lloyds during the financial crisis, the Treasury has recovered over 80% of its original investment.
Harriett Baldwin, economic secretary, described the latest dividend as ‘another milestone’ in the government’s plan to recover taxpayers’ money to prop up the banking system during the crisis.
The government plans to launch a retail sale of Lloyds Banking Group shares with a target of returning its stake, in full, to the private sector in 2016 to 17. The government had planned to launch the public sale of Lloyds shares in the spring but this was put back due to turmoil in the financial markets, the BBC reported.
“I am determined to build on this success by making Lloyds shares available to the public this year, so that we can build a share-owning democracy and continue to reduce our national debt,” she added.