Average UK pay rises remain at 3%

Average pay rises in the UK have remained at 3% in recent months, with little sign of them increasing further, a new report suggests.

A review of 90 agreements in the three months to February showed average rises of 3%, but 3.5% in the public sector.

Sheila Attwood, of The Industrial Relations Services (IRS), which produced the report, said there would be little change in coming months.

But she said public sector settlements would move towards the 3% level.

Pay rises were higher in the public sector

UK pay

"Judging by the review bodies' recommendations and the Government's desire to keep pay rises within manageable budgetary bounds, 3% will also become the benchmark for many public sector pay deals this spring," she said.

"This is significantly down on the 3.5% median seen over the past year and will further add to the influences keeping the "whole-economy" median at 3%."