{"id":17824,"date":"2026-05-27T14:29:52","date_gmt":"2026-05-27T14:29:52","guid":{"rendered":"https:\/\/www.brightmine.com\/uk\/?post_type=resources&p=17824"},"modified":"2026-05-27T14:29:53","modified_gmt":"2026-05-27T14:29:53","slug":"pay-trends-2026-may-report","status":"publish","type":"resources","link":"https:\/\/www.brightmine.com\/uk\/resources\/total-rewards\/pay-trends\/pay-trends-2026-may-report\/","title":{"rendered":"Pay trends 2026 | May Report"},"content":{"rendered":"\n
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Written by: <\/p>\n\n\n

Clare Moore<\/a><\/div><\/div>\n\n\n\n
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UK pay awards stall at 3% as inflation pressure builds<\/h2>\n\n\n\n

The latest data from Brightmine, the HR data and insights provider, reveals that the median basic pay award has eased back to 3% for the three months to the end of April 2026, even as inflation has risen to 3.3%.<\/p>\n\n\n\n

The findings suggest that pay growth is moving back to 3%, marking a clear return of the rate seen across 2025. With inflation continuing to increase costs across businesses, employers are taking a more cautious and controlled approach to pay decisions, balancing competitiveness and retention against affordability. <\/p>\n\n\n\n

Employers maintain restraint amid inflation and cost pressures<\/h2>\n\n\n\n

The latest pay settlements reflect the continued pressure facing employers in a challenging economic environment. The Bank of England held interest rates at 3.75% in April, and while GDP showed strong growth of 0.3% in March, ithe outlook remains subdued, particularly as the economic impacts of the Iran conflict feeds through.<\/p>\n\n\n\n

Organisations also remain under pressure from higher operating costs and increased statutory wage rates introduced in April, further limiting scope for larger pay awards.<\/p>\n\n\n\n

Sheila Attwood, Senior Content Manager, Data and HR Insights at Brightmine, comments: \u201cThe return to a 3% median pay award suggests that many organisations are settling into a more sustainable pay position after several years of elevated settlements.<\/p>\n\n\n\n

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“Although inflation pressures have not disappeared, employers are clearly weighing those concerns against affordability constraints and a weaker labour market outlook. The fact that almost half of organisations are awarding lower increases than last year highlights the continued emphasis on pay restraint during 2026.”<\/p>\n\n\n\n

– Sheila Atwood, Senior Content Manager, Data and HR Insights, Brightmine<\/p>\n<\/div>\n\n\n\n

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Written by: <\/p>\n\n\n

Clare Moore<\/a><\/div><\/div>\n<\/div>\n\n\n\n
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Benchmark with confidence. Lead with insight.<\/h3>\n\n\n\n

Compare your data to industry benchmarks on turnover, training, compensation trends and more with the Brightmine HR & Compliance Centre.<\/p>\n\n\n\n

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