Overview

• Incomes Data Research reported a median pay settlement of 3.0% in the three months to July, the lowest since December 2021.
• Only 9% of employers granted pay rises of 4% or more in July compared with 39% in June, though IDR noted July sees relatively few awards.
• Recruiters said starting salaries for permanent roles rose by the smallest amount in four-and-a-half years as hiring slowed again and candidate availability jumped to the highest since November 2020.
• The BoE’s Decision Maker Panel showed firms raised wages by an annual 4.7% in the three months to July and expect 3.6% over the year ahead, underscoring differences across pay measures.
• Businesses voiced concern about potential new costs in Chancellor Rachel Reeves’ November 26 budget after last October’s £25 billion rise in employer social security contributions.