UK pay settlements rise to highest in 2025, Brightmine says

[LONDON] Median pay settlements granted by British employers in the three months to the end of October rose to their highest so far this year at 3.3 per cent, up from 3 per cent in the three months to September.

Brightmine said the move reflected higher public sector pay deals which took effect in August and September.

“Early indications suggest that 2026 pay awards are likely to remain steady - and potentially edge lower - as cost pressures continue to weigh on employers,” Brightmine manager Sheila Attwood said.

Median public sector pay award was 3.8 per cent versus 3 per cent in the private sector. About 53 per cent of pay awards were below 2024 levels, while 13 per cent were above.

The survey was based on 24 pay awards covering over 460,000 employees which took effect between Aug 1 and Oct 31. About 44 per cent of employers said pay awards fell short of employees’ expectations.

The Bank of England is closely monitoring wage growth for signs of inflation pressure in the economy. REUTERS