Pay awards handed out by British employers increased slightly at the turn of the year, according to data collected by Brightmine, suggesting a tentative move toward richer settlements in 2026 after a broadly steady 2025.
Brightmine reported a median basic pay award of 3.2% in the three months to the end of January, up from the 3% median recorded across 2025. The provider compiled its data between November 1 and January 31, drawing on 59 pay awards that together covered just over 238,000 UK employees.
The small rise comes as firms face pressure to attract and retain staff. Brightmine noted that two-fifths of the latest pay awards were higher than the previous year, while roughly two-thirds of all settlements fell in the 3% to 4% range.
At the same time, Brightmine highlighted factors likely to restrain more generous settlements. It said that challenges confronting the economy mean employers are expected to remain cautious in setting pay. The provider also flagged that the minimum wage increase scheduled for April will leave less scope - or headroom - for pay progression elsewhere in employer pay rounds.
The Bank of England is tracking pay growth closely as it weighs the timing of potential reductions in interest rates. Official data published on Tuesday showed a slowdown in earnings growth in the last three months of 2025, a broader measure that the central bank monitors alongside pay settlement trends.
In aggregate, the Brightmine sample portrays a labour market picture in which some employers are moving toward higher settlements while the overall distribution of awards remains concentrated in the low single digits. The data set is limited to the sampled 59 awards and just over 238,000 employees, and Brightmine's findings reflect that mix of employers and workforce sizes captured during the November-to-January collection window.
For market participants and corporate analysts, the Brightmine readout is a datapoint on wage momentum heading into 2026 that the Bank of England will consider alongside official earnings statistics when assessing the case for any future policy easing.
Data note: Brightmine's figures derive from pay awards gathered from November 1 to January 31 and cover 59 settlements representing just over 238,000 UK employees.