April 22 (Reuters) - British employers offered slightly higher pay deals in the first quarter of 2026 but early signs of softness emerged in April, a key month for wage settlements, a survey from
UK Pay Awards Rise in Q1 2026 but April Data Suggests Softer Gains
Trends and Analysis of UK Pay Settlements in Early 2026
Overview of Q1 2026 Pay Awards
April 22 (Reuters) - British employers offered slightly higher pay deals in the first quarter of 2026 but early signs of softness emerged in April, a key month for wage settlements, a survey from human resources data publisher Brightmine showed on Wednesday.
Bank of England's Focus on Wage Data
The Bank of England is watching pay awards as it gauges inflation pressure in Britain's economy, which investors view as more vulnerable than its peers to higher energy prices caused by the war in Iran.
Official Earnings and Labour Market Indicators
Official data on Tuesday showed average weekly earnings cooled by less than expected in the three months to February, but other measures such as vacancies and payrolls pointed to a softer labour market in March, after the start of the war.
Details from the Brightmine Survey
- Brightmine said the median pay deal was 3.5% in the three months to March, up from 3.3% in the previous two rolling quarters
- Initial analysis pointed to a median pay award of 3% for April, when almost half of wage settlements take place each year, with the uncertain economic outlook and increases in the minimum wage and other costs making employers cautious.
Expert Commentary
• "While increases remain broadly in line with expectations, there is little evidence of upward pressure building," said Sheila Attwood, senior content manager of data and HR insights at Brightmine.
Survey Methodology
• Brightmine based its reading for the first quarter on 111 pay deals, representing settlements for 373,000 employees
(Reporting by Andy BruceEditing by William Schomberg)
