Thursday, July 7, 2022

UK workers’ high pay awards unlikely to continue


Employers increased annual pay awards in the second quarter to an average of 2% from 1% in the first quarter

British workers received higher pay awards in the April-June period than in the first three months of the year but the acceleration is unlikely to continue, a survey by human resources data provider XpertHR showed on Thursday.

Employers increased annual pay awards in the second quarter to an average of 2% from 1% in the first quarter. But the figure for the three months to June was in line with rises seen in the three months to May and April, which suggested that pay rises had peaked, XpertHR said.

The Bank of England (BoE) is watching for signs of higher inflation feeding into wages as it weighs up when to start tapering the stimulus programme it rolled out last year to help support the economy during the coronavirus crisis.

Many employers are struggling to fill vacancies and official measures of pay growth have increased in recent months.

Organisations are understandably still being cautious in their approach to annual pay reviews, and whilst we have seen some growth from the awards made in the early months of the year, we are unlikely to see this level of acceleration continue, XpertHR pay and benefits editor Sheila Attwood said.

Despite this, it is still encouraging to see the proportion of pay freezes decline in 2021 as confidence returns, she said.

XpertHR said food manufacturers, chemical companies and retailers recorded the highest pay awards in 2021 so far.

The value of pay awards in the public sector declined for the first time in nearly three years, dropping to 2.3% for the 12 months to the end of June 2021 from its recent average of 2.5%.


The articles are for information purposes only and Invest for Property shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Invest for Property does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply