MNI: UK July Pay Awards Holding At Robust 4-Year High: XpertHR

--UK Apr-June Pay Median Pay Deals 2.5% 

By Jai Lakhani

     LONDON (MNI) - UK median pay deals in the three months through June, came

in at 2.5%, for the sixth consecutive month, a survey by XpertHR found. The last

time pay awards stabilised above 2% was in December 2008. 

     The median pay award across the whole economy was 2.5% between April and

June, reported XpertHR, with the middle half of pay awards (the interquartile

range) worth between 2% and 3.1%.

     Of the 272 basic pay awards sampled, the median for the private sector was

2.5%, compared with 1.7% in the public sector. According to XpertHR, the private

sector has fared better than the public sector for pay awards for many years but

the first major public sector pay awards for 2018 are now beginning to settle. 

     In the NHS, starting salaries for all pay bands will be increased including

a 13.3% rise on the lowest pay point. Armed forces, prison services and school

teachers pay bands will rise by 2.9%, 2.75% and 3.5% respectively. 

     Over the past five years public sector pay growth has centred around the

1.0%-mark. However, these new awards, according to XpertHR, show a clear upwards

trend for settlements in the sector. 

     On a sector basis, Pay awards in the manufacturing-and-production sector

have risen to 3.0% in the latest rolling quarter, the highest since the three

months to December 2008. The services sector median pay award of 2.5% is

unchanged on last month's figure. 

     "The current run of higher pay awards look set to continue as we head into

the quieter months of the pay bargaining year. The increases recommended by the

pay review bodies will also provide a welcome boost to pay award levels in the

public sector," Sheila Attwood, XpertHR pay and benefits editor, said

     The Bank of England Monetary Policy Committee's central forecast is for a

pick-up in earnings growth this year. The BOE's May Inflation projections were

based on headline average weekly earnings growth rising to 2.75% in 2018 and on

up to 3.25% and 3.5% in 2019 and 2020 respectively. 

--MNI London Bureau; +44 203 865 3828; email: jai.lakhani@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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