UK employers awarded median pay increases of 3.2% in the three months to the end of July, the lowest level in 10 months, according to data from human resources consultancy Brightmine.
The decline from 3.3% in the previous rolling quarter reflects a broader trend of cautious wage-setting, with 71% of settlements falling between 2% and 3.99%. The most common award remained 3%, while 35% of settlements were lower than the same period last year for the same employee group. Another 35% matched prior-year levels, and 30% increased.
Brightmine’s analysis, based on 36 pay awards covering approximately 762,000 UK employees, was released on Wednesday and follows official data indicating a slight weakening in the jobs market during the second quarter. The findings suggest employers are prioritizing cost control amid economic uncertainty.
Sheila Attwood, Brightmine’s HR insights and data lead, noted that the shift toward lower awards signals growing caution. "The fact that more than a third of matched pay awards are now lower than last year does suggest some employers are becoming more cautious," she said.
The data covers pay settlements implemented between May 1 and July 31 and was published on August 18, 2026.
