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UK Broadband

UK pay awards cool to 3% as employers tighten budgets, Brightmine data shows

The median British pay award fell to 3% in the three months to August, with employers pointing to higher employment costs and a softer labour market.

By James Calloway · · 1 min read

The Bank of England building on Threadneedle Street in the City of London.
Photo: Robin Sones, via Wikimedia Commons (Geograph) · source

Pay settlements by British employers have cooled, adding to signs of a softer labour market as businesses say they face higher employment costs and tighter budgets, according to a survey published on Wednesday.

The median pay award was revised down to 3.0% from 3.2% in the three months to July and held at that level in the three months to August, figures from human resources data firm Brightmine showed.

“Pay awards remain stagnant, and that very much looks to be the story of 2027. Brightmine data shows pay growth settling at 3%, and there is very little reason for that to shift significantly in the medium term,” said Sheila Attwood, Brightmine’s HR insights and data lead.

The data is likely to offer some reassurance to Bank of England officials about domestic inflation pressures as they weigh an interest rate hike in November, Reuters reported.

Employers are forecasting median pay awards of 3% for the year ahead, compared with realised awards of 3.2% for the year to 31 August. Brightmine said settlements were tightly clustered, with 71% of awards falling between 3% and 4%.

The figures are based on 45 pay awards implemented between 1 June and 31 August, covering more than 755,000 UK employees.

Sources

More on this topic: all UK Broadband stories

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