UK pay awards rise to 3.4% in three months to May, IDR survey shows LONDON (Reuters) -Average annual pay awards offered by British employers rose in the three months to May, after an increase in the minimum wage boosted pay significantly for some lower-paid workers, a survey showed on Wednesday. Incomes Data Research said the median pay settlement awarded by major British employers had increased to 3.4% in the three months to May, up from 3.2% in the three months to the end of April. Median pay awards for private-sector workers increased to 3.5% in the same period, while public-sector pay awards averaged 3.6%. The proportion of private sector employers offering pay settlements of more than 6% jumped to 19% from April’s 12%, reflecting higher increases in the services sector. The National Living Wage rose by 9.7% at the start of April to 10.42 pounds ($14.34) an hour. "The National Living Wage has a less direct impact in manufacturing, compared to private services," Zoe Woolacott, a senior researcher at IDR, said. "However, manufacturing employers still face pressures to offer competitive rates of pay in order to recruit and retain staff." The news is could to be a concern for the Bank of England, which is keeping a close watch on inflation pressures in the economy. The BoE, which held interest rates in June, has forecast a slowdown in pay growth this year and expects inflation to peak at 3.7% in September and remain just under 3.5% for the remainder of 2025. Official figures showed British pay growth slowed sharply in the three months to April to 5.2% while inflation cooled in May. ($1 = 0.7266 pounds)

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UK pay awards lowest in three years, IDR survey shows LONDON (Reuters) - Pay awards granted by British employers cooled during the three months to February, according to a survey that chimed with an official gauge of slowing wage growth that should keep the Bank of England on track to reduce borrowing costs later this year. Incomes Data Research said on Wednesday that the median pay rise awarded by major employers dropped to 3.5% in the three months to February, the lowest reading in three years and down from 4.0% in the three months to January. Overall pay settlements fell to 3.2% from 3.5%, the lowest since the three months to February 2022. Official figures showed British pay growth slowed marginally in the three months to January to 6.1% while inflation cooled more than expected in February. The BoE, which held interest rates at 4.5% in March, is closely monitoring wage growth. It expects private-sector pay to slow to 3.75% by the end of this year. Zoe Woolacott, senior researcher at IDR, said median pay settlements across the economy could rise in April due to the increase in the minimum wage, which came into effect on Tuesday, and the outlook for inflation and the jobs market. "Wage rises tend to lag behind inflation, and so the former may eventually follow the upward trend in the latter, depending on the extent of any rise in inflation," Woolacott said. Some surveys have shown a hit to hiring from employers adjusting to an increase in social security contributions that will come into force on April 6, and Britain’s budget regulator halved its forecast for economic growth this year to 1%. IDR’s survey, covering pay deals for more than 230,000 employees, was based on 75 awards between December 1, 2024 and February 28. Which stock should you buy in your very next trade? With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

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