LONDON, Sept 20 (Askume) – British employers are increasingly planning to cut pay rises next year, a survey shows. The survey is likely to provide a boost to the Bank of England as it looks for further signs of easing inflationary pressures in the economy.
Nearly two-thirds of employers plan to offer employees lower pay hikes in 2025 than in 2024, according to a survey by Income Data Research, an independent data and analytics organisation.
Last year, 53% of employers said they expected to cut salary increases.
The Bank of England, which kept interest rates at 5% on Thursday after cutting them in August, is closely watching wage growth and is cautious about further cuts in borrowing costs.
IDR said 45% of organizations plan to increase salaries by 3% to 4% in 2025, as the shortage of candidates to fill positions will ease slightly and inflation will moderate.
The survey is based on responses from 100 employers, 72% of which are in the private sector.
The average wage settlement offered by major employers fell to 4.0% in the three months to July, the lowest level since August 2022, from 4.8% in the three months to June, IDR said earlier this month.
