UK Total Pay Growth Below Forecasts

2026-02-17 07:26 By Farida Husna 1 min. read

Total average weekly earnings in the UK, including bonuses, increased 4.2% year-on-year to GBP 735 in the three months to December 2025, falling short of market estimates and slowing from a marginally revised 4.6% rise in the previous period.

It marked the softest rise since the three months to August 2024, as private sector wage growth eased to 3.5% from 3.8%, marking the weakest pace since early 2021.

Also, public sector pay gains moderated to 7.0%, the lowest since July-September 2025, following a 7.8% rise.

Adjusted for inflation, total earnings increased 0.5% in the three months to December, slowing from a 0.7% gain in the previous period and pointing to the lowest level since the three months to June 2023.



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UK Total Pay Growth Above Forecasts
Total average weekly earnings in the UK, including bonuses, increased 3.8% year-on-year to GBP 745 in the three months to February 2026, beating market estimates of 3.6% but slowing from a 4.1% increase in the prior period. This marked the slowest growth since the three months to November 2020. Private sector wage growth cooled to 3.5% from 3.7%, the weakest since late 2029, while public sector pay gains also moderated to 5.2%, the lowest since early 2025, after a 6.0% rise previously. Adjusted for inflation, total earnings increased 0.4% over the period, easing from the prior 0.7% and marking the softest growth since mid-2023.
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UK Total Pay Growth Softens to Multi-Year Low
Total average weekly earnings in the UK, including bonuses, rose 3.9% year-on-year to GBP 742 in the three months to January 2026, matching market forecasts but easing from a 4.2% increase in the prior period. This marked the slowest growth since the three months to November 2020. Private sector wage growth cooled to 3.5% from 3.8%, remaining at its weakest pace since early 2021, while public sector pay gains also moderated to 5.9%, the lowest since July–September 2025, after a 7.0% rise previously. Adjusted for inflation, total earnings increased 0.5% over the period, unchanged from the prior reading and still the weakest growth since mid-2023.
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UK Total Pay Growth Below Forecasts
Total average weekly earnings in the UK, including bonuses, increased 4.2% year-on-year to GBP 735 in the three months to December 2025, falling short of market estimates and slowing from a marginally revised 4.6% rise in the previous period. It marked the softest rise since the three months to August 2024, as private sector wage growth eased to 3.5% from 3.8%, marking the weakest pace since early 2021. Also, public sector pay gains moderated to 7.0%, the lowest since July-September 2025, following a 7.8% rise. Adjusted for inflation, total earnings increased 0.5% in the three months to December, slowing from a 0.7% gain in the previous period and pointing to the lowest level since the three months to June 2023.
2026-02-17