UK employers scale back pay expectations for 2027, Brightmine survey shows

UK employers scale back pay expectations for 2027, Brightmine survey shows

British employers expect to scale back pay increases markedly next year, according to a survey on Wednesday ​from human resources data firm Brightmine that added to ‌signs of a cooling labour market.

U.K. Employers Plan Significantly Smaller Raises For 2027

U.K. employers scale back pay expectations for 2027, Brightmine survey shows

Employers plan smaller pay rises for 2027 despite inflation uncertainty

Early forecasts suggest organisations are becoming more cautious on reward budgets as cost pressures persist and economic conditions remain uncertain.

Pay awards remain stable but employers cautious for future

Businesses are keeping a tight hold on pay budgets amid ongoing concerns about political uncertainty and inflation, according to the latest predictions from Brightmine. The median basic pay award for the three months to May and year to May was 3.2%, with most pay deals clustering between 3% and 4%, it said. More than half of employers told Brightmine that they expect to award pay awards below 3% for 2027, and 41.6% forecasted settlements of betw…