Wage stagnation | Four in five UK workers receive lower pay awards than in 2024

Four in five UK employees have received smaller pay awards in 2025 compared to last year, with pay awards standing at 3% for the seventh consecutive rolling quarter, new data from Brightmine, the HR data and insights provider, reveals.

After a period of historically high settlements in response to inflation, Sheila Attwood, HR Insights and Data Lead at Brightmine, explained “we’re now seeing the return of employer pay restraint.”

“While 3% is consistent, it's also stagnant, and real-terms pay erosion is starting to reappear for many, meaning many workers are actually worse off this year compared to inflation.”

Wage stagnation takes hold amid fragile economic outlook

The findings land as the UK marks one year under the Labour Government, with economic turbulence marking the milestone.