Part-nationalised British bank Lloyds will cut the bonuses of 13 leading members of staff, including its former chief executive and five executive directors, following an insurance mis-selling at the group last year.

Lloyds, which is 40 percent owned by the British government after a state bailout in 2008, said it would reduce the 2010 bonus awards to take into account a 3.2 billion pound provision it made last year over the payment protection insurance (PPI) mis-selling.

The bank said it would cut the bonuses due to be paid out in deferred shares by 40 percent for former chief executive Eric Daniels, by 25 percent for four other directors, and by 5 percent for the others.

(Reporting by Sudip Kar-Gupta; Editing by Myles Neligan)