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UK Pay Awards Forecasted to Drop to 3% Amid Inflation

10/30/2025

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Story summary
  • UK pay awards are expected to remain around 3% over the next year, Brightmine says.
  • A survey shows 45% of employers expect no change in pay.
  • Thirty-two percent of employers anticipate lower pay awards.
  • The 3% forecast marks a drop from the 2023 average of 6%, due to high inflation and rising costs.
  • Most organizations will continue pay review cycles.