by Sheila Attwood, Senior Content Manager, Data and HR Insights at Brightmine
The latest Brightmine analysis of UK pay data shows a continued slowdown in pay growth overall, with the median pay award returning to the lowest level seen this year at 4.5%.
The majority of pay deals are lower than the previous settlement received by the same group of employees. Almost three-quarters (73.1%) worth less than they were last year. Just 7.7% of deals were worth more.
This downward trend is set against a backdrop of falling inflation.
The analysis is based on 48 pay settlements that came into effect between 1 May and 31 July 2024, covering 743,755 employees.
Key findings of the analysis reveal that the interquartile range (the middle 50% of pay awards) has narrowed to 1.3 percentage points, the most common basic award is worth 5% and the median of all basic plus merit deals is 5.0%.
Chart 1: Pay review pattern – whole economy, July 2023 to July 2024
Public sector gets the green light on all pay recommendations
Following a long wait, the new Labour government has accepted in full the public-sector pay review bodies’ recommendations, which includes:
- A 6% pay uplift for all service personnel at pay points OR2-02
- A 5.5% increase for all NHS staff paid under Agenda for Change
- A 6% increase to national salary scales, pay ranges, and the pay element of contracts for doctors and dentists
- A 5% increase for all Fair and Sustainable National Bands in the prison service
Chart 2: Pay review pattern – public and private sectors, July 2023 to July 2024
Information and communication sector pay deals continue to lag
With a median pay award of just 3.5%, workers in the information and communication sector are seeing the lowest pay awards, while transport and storage workers are being awarded the highest median pay awards of 6.4%, followed closely by the construction sector at 6.1%. This is based on all deals effective year to date, 1 January to 31 July 2024.
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About the author
Sheila Attwood
Senior Content Manager, Data and HR Insights at Brightmine
Sheila leads the team that is responsible for the data and market insights content on Brightmine, including the employer practice surveys, webinars and podcasts, and reward content.
Sheila holds a BA in geography. She has almost 30 years’ experience of working in a research and editorial capacity in a publishing environment, with a focus on the labour market, reward, industrial relations and HR practice.
Sheila is an expert on company pay awards and is regularly called upon to appear in the broadcast and print media to comment on the level of increase in pay rates.
Connect with Sheila on LinkedIn
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