British Pay Rises at Joint-Lowest Level Since June 2022

LONDON (Reuters) – British employers have offered staff the joint-lowest pay rises since June 2022, with a median raise of 4% for the three months ending in August, according to figures released by human resources data company Brightmine on Tuesday.

These figures align with other pay surveys and official data indicating a slowing pay growth, coinciding with inflation approaching the Bank of England’s 2% target.

The Bank of England (BoE) is closely monitoring pay growth as it anticipates further indicators of easing inflation pressures before contemplating interest rate cuts. Sheila Attwood, senior content manager at Brightmine, noted that employers have adjusted their pay awards in response to a decline in inflation, resulting in lower pay increases compared to last year.

The 4% annual increase noted for the three months ending in August matches the revised figure for the previous three months of July, down from an earlier estimate of 4.5%.

Official statistics revealed that average weekly earnings growth, excluding bonuses, experienced its slowest pace in over two years at 5.1% in the three months leading to July.

A BoE survey conducted among businesses over the three months ending in August indicated expectations of a 4.1% wage increase over the upcoming year.

Brightmine, previously known as XpertHR, indicated that the August data was derived from 67 pay awards affecting approximately 900,000 employees.