Finance
UK pay settlements rise to highest in 2025, Brightmine says
Published by Global Banking & Finance Review®
Posted on November 19, 2025
1 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 19, 2025
1 min readLast updated: January 20, 2026
UK pay settlements rose to 3.3% in 2025, led by public sector increases. Future awards may stabilize as cost pressures persist, Brightmine reports.
LONDON (Reuters) -Median pay settlements granted by British employers in the three months to the end of October rose to their highest so far this year at 3.3%, up from 3% in the three months to September.
Brightmine said the move reflected higher public sector pay deals which took effect in August and September.
"Early indications suggest that 2026 pay awards are likely to remain steady - and potentially edge lower - as cost pressures continue to weigh on employers," Brightmine manager Sheila Attwood said.
* Median public sector pay award 3.8% versus 3% in privatesector * 53% of pay awards were below 2024 levels, while 13% wereabove * Survey based on 24 pay awards covering over 460,000employees which took effect between August 1 and October 31 * 44% of employers said pay awards fell short of employees'expectations * The Bank of England is closely monitoring wage growth forsigns of inflation pressure in the economy(Reporting by David Milliken; editing by Suban Abdulla)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power, and is often measured by the Consumer Price Index (CPI).
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