'Watch & wait' approach | UK pay awards hold steady in first quarter

New data reveals a consistent picture for pay awards in the first quarter of 2025, with the median pay award remaining at 3% for the fourth consecutive rolling quarter.  

Despite the recent increase in National Insurance contributions, data from Brightmine, an HR and data insights provider, indicates that a sharp drop in pay awards is unlikely in the near term. 

Sheila Attwood, HR Insights and Data Lead at Brightmine says: “Currently the data isn’t showing any signs of a knee-jerk reaction to recent national insurance changes. However, we do know that employers are taking a watch and wait approach, so we expect to see that reflected in the second half of this year. 

“The good news is that the latest GDP figures show stronger-than-expected growth of 0.5% in February, offering some reassurance for businesses. However, global uncertainty – particularly around the actions of the US government – continues to cloud the outlook. These two factors confirm our view that pay awards levels will remain steady in the near future.”