UK private sector pay awards rise to 3.4% in three months to January, IDR survey shows

LONDON, March 10 (Reuters) - Average annual ​pay ⁠awards offered by British private ​sector employers rose in the three months to January, according to ​a ‌survey on Tuesday that contrasted with an official gauge of ⁠slowing wage growth, and add to pressure ⁠on the Bank ​of England to raise rates.

Incomes Data Research said the median pay settlement awarded by major employers increased to 3.4% ​in ‌the three months to January, up from 3.0% in the three months to the end of December.

"The uptick in the median is an indication that cost-of-living pressures ​persist, even though the rate of inflation started to ‌come down during 2025. The path of inflation, however, may once more become ‌an important determinant of pay outcomes in 2026, particularly in light of the current geopolitical situation," Zoe Woolacott, a senior researcher ​at IDR, said.

IDR also said:

* The rise in private pay ‌awards was in part due to firms, mainly in the manufacturing, production, and services sectors, offering a larger proportion ⁠of wage ⁠increases worth at least 3% to ‌4% or more to workers.

* January is a key month for ​deals ​in the manufacturing sector.

* Pay settlements across ‌the whole economy stood at 3.2%.

* The survey covered 54 awards from across the economy between November 1 and January 31. (Reporting by Suban Abdulla)