Pay awards at 3.5% as early April data signals easing momentum
The latest data from Brightmine, the HR data and insights provider, shows that the median basic pay award stands at 3.5% for the three months to the end of March 2026.
Early indicators from April, however, point to a modest slowdown. Across all settlements effective in 2026 to the end of April, the median basic pay award stands at 3.2%, suggesting pay growth is beginning to ease.
A cautious start to the key pay review month
April is the most significant month in the pay calendar, with almost half of all settlements typically taking effect during this period. Initial analysis of awards points to a median basic pay award of 3% in this month alone, below the level seen in the first quarter.
This early snapshot highlights a continued clustering of pay deals within a narrow range, with the majority of awards falling between 2.8% and 3.8%. At the same time, nearly half of settlements are lower than those awarded to the same employee groups last year, reinforcing the persistence of pay restraint.
Sheila Attwood, Senior Content Manager, Data and HR Insights at Brightmine, comments: “This year’s preview of April pay awards suggests employers are starting to take a more measured approach. While increases remain broadly in line with expectations, there is little evidence of upward pressure building.
“Instead, we are seeing a cautious stance established earlier in the year, as organisations balance affordability with higher statutory pay rates and an uncertain economic outlook.”
– Sheila Atwood, Senior Content Manager, Data and HR Insights, Brightmine
Economic pressures continue to shape pay decisions
This year’s April pay round comes against a backdrop of heightened global uncertainty and continued domestic cost pressures. Rising energy prices linked to ongoing geopolitical tensions, are complicating the inflation outlook, while interest rates remain on hold as policymakers assess the path back towards the 2% target.
At the same time, increases to the national living wage and other statutory minimum rates from the 1st April are placing additional pressure on pay structures, particularly for lower-paid roles. For many employers, mandatory uplifts are absorbing a greater share of pay budgets and limiting headroom for higher increases elsewhere.
Brightmine March Pay Trends 2026 Highlights
Our latest analysis covers 111 pay awards implemented between 1st January 2026 and 31st March 2026, representing pay settlements for over 373,000 UK employees. Our headline findings are as follows:
- Median pay award edges up. The median basic pay award for the three months to end‑March 2026 stands at 3.5%, up 0.2 percentage points from the previous two rolling quarters (both at 3.3%), indicating a modest upward movement in settlements.
- Deals continue to cluster around the median. Almost 6 in 10 basic pay awards (59.4%) fall between 3% and 4% (inclusive), with 3.1%–3.99% the most common range (accounting for 31.3% of all awards).
- More organisations awarding higher increases than last year. Matched sample analysis shows that just over two‑fifths of pay awards (42.9%) were higher than those given to the same employee group in 2025, while around one‑third (34.7%) were lower and just under a quarter (22.4%) were unchanged.
