Data from Brightmine has found UK pay awards have remained consistent at 3.3 per cent for the three months to the end of June 2026. The findings suggest that the overall level of pay settlements has been more resilient than employers anticipated at the start of 2026. With the year now at its halfway point, the current figure is likely indicative of where pay awards will settle for 2026 as a whole. However, almost half (45.7 per cent) of matched settlements were lower than those awarded in 2025, suggesting that while the median pay award remains steady, a significant number of employers are awarding smaller rises than they did last year.
June saw particularly difficult business conditions for UK organisations. Geopolitical events, particularly those in the middle east, have created tougher financial conditions, and increased the level of business uncertainty.
Sheila Attwood, Senior Content Manager, Data and HR Insights at Brightmine, comments: “It’s clear that the broader business conditions in the UK are difficult. Economic growth is muted, and higher costs are weighing on businesses, and ultimately households.
“However, pay awards remain consistent, a trend unbroken over three rolling quarters. While the big picture continues to remain uncertain for 2027, the remarkable level of stability in the year to date gives us some indication that organisations are finding more sustainable pay positions in spite of wider economic challenges.”
Brightmine analysis covers 268 pay awards implemented between 1 April and 30 June 2026, representing pay settlements for more than 3.6 million UK employees. Our headline findings are as follows:
- Median stable. The median pay award remains at 3.3 per cent for the third consecutive rolling quarter, following revisions to the previous two months’
- Awards cluster between 3 per cent and 4 per cent.More than six in 10 (62 per cent) settlements delivered increases of between 3 per cent and 4 per cent (inclusive).
- Almost halfof matched settlements were lower than in 2025. Matched sample analysis shows that 7 per cent of settlements were lower than those awarded to the same employee group last year, while 30.6 per cent were higher and 23.7 per cent remained unchanged.
- Median awards range from 3 per cent to 3.5 per cent across sectors.Public services and manufacturing and production both recorded a median pay award of 3.5 per cent, compared with 3.3 per cent in private-sector services and 3 per cent in charities and not-for-profit organisations.
