UK pay awards hold steady at 3.3%, but almost half of settlements are lower than last year
UK pay awards have remained consistent at 3.3% for the three months to the end of June 2026, according to data from Brightmine, the HR data and insights provider.
The findings suggest that the overall level of pay settlements has been more resilient than employers anticipated at the start of 2026. With the year now at its halfway point, the current figure is likely indicative of where pay awards will settle for 2026 as a whole. However, almost half (45.7%) of matched settlements were lower than those awarded in 2025, suggesting that while the median pay award remains steady, a significant number of employers are awarding smaller rises than they did last year.
Pay awards stable despite geopolitical and inflationary pressures
June saw particularly difficult business conditions for UK organisations. Geopolitical events, particularly those in the middle east, have created tougher financial conditions, and increased the level of business uncertainty.
Sheila Attwood, Senior Content Manager, Data and HR Insights at Brightmine, comments: “It’s clear that the broader business conditions in the UK are difficult. Economic growth is muted, and higher costs are weighing on businesses, and ultimately households.
“Pay awards remain consistent, a trend unbroken over three rolling quarters. While the big picture continues to remain uncertain for 2027, the remarkable level of stability in the year to date gives us some indication that organisations are finding more sustainable pay positions in spite of wider economic challenges.”
– Sheila Attwood, Senior Content Manager, Data and HR Insights, Brightmine
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