British employers maintained average pay rises at 3% in the three months leading up to March, according to new data from HR analytics firm Brightmine—a figure likely to be welcomed by the

Bank of England (BoE).

This marks the fourth consecutive quarter where pay awards have held at this level, matching the slowest pace of growth since December 2021.

BoE policymakers are closely monitoring how businesses respond to the recent rise in national insurance contributions and the increased national minimum wage, both of which came into effect in April.

“So far, the data shows no immediate reaction to the national insurance changes,” said Sheila Attwood, senior content manager at Brightmine. “That said, many employers are adopting a cautious ‘wait and see’ stance, which could influence pay decisions in the latter half of the year.”

The UK's minimum wage rose by nearly 7% this month. While Brightmine noted a shift toward pay deals on the lower end of the scale, overall wage growth has remained steady.

The Bank of England is keeping a close eye on wage trends as it assesses whether inflationary pressures in the labor market are easing enough to justify cutting interest rates. A rate cut is widely anticipated on May 8.

Brightmine’s findings are based on an analysis of 125 pay settlements covering approximately 192,000 employees during the first quarter of 2025. Photo by Diliff, Wikimedia commons.