UK Total Pay Growth Below Expectations

Total average weekly earnings in the UK, including bonuses, rose 4.3% year-on-year to GBP 749 in the three months to May 2026, slowing from 4.4% in the previous two periods and falling short of market estimates of 4.5%. The increase marked the slowest pace since the three months to February, with private sector wage growth slowing to 4.0% from 4.2%. Meanwhile, public sector pay growth accelerated to 5.5% from 5.2%, the strongest increase since the three months to January. After adjusting for inflation, total earnings rose 1.1%, slightly below the 1.2% increase in the three months to April.

Total average weekly earnings in the UK, including bonuses, rose 4.1% year-on-year to GBP 753 in the three months to April 2026, matching the upwardly revised increase in the previous period and slightly exceeding market expectations of 4.0%. The pace remained the fastest since the three months to November 2025. Private sector wage growth eased marginally to 4.2% from 4.3%, which had been the strongest since the three months to September 2025. In contrast, public sector pay growth accelerated to 5.2% from 4.9%, rebounding from its weakest pace since late 2024. Adjusted for inflation, total earnings increased 1.2%, up from 1.1% in the three months to March and marking the strongest real wage growth since the three months to April 2025.

Total average weekly earnings in the UK, including bonuses, increased 4.1% year-on-year to GBP 749 in the three months to March 2026, exceeding market estimates of 3.8% and accelerating from a 3.9% increase in the prior period, which had marked the slowest pace since the three months to November 2020. Private sector wage growth quickened to 3.9% from 3.6%, the fastest since late 2025, while public sector pay gains slowed to 4.9%, the lowest since late 2024, after a 5.2% rise previously. Adjusted for inflation, total earnings increased 0.8% over the period, faster than 0.6% gain in the three months to February and marking the strongest growth since late 2025.