British employers offered slightly higher pay deals in the first quarter of ​2026 but ⁠early signs of softness emerged in April, a ‌key month for wage settlements, a survey from human resources data ​publisher Brightmine showed on Wednesday.

The Bank of England is watching pay ​awards as it ​gauges inflation pressure in Britain's economy, which investors view as more vulnerable than its peers to ⁠higher energy prices caused by the war in Iran.

Official data on Tuesday showed average weekly earnings cooled by less than expected in the three months to February, but ​other measures ‌such as ⁠vacancies and ⁠payrolls pointed to a softer labour market in March, after the ​start of the war.

 

• Brightmine said ‌the median pay deal was ⁠3.5% in the three months to March, up from 3.3% in the previous two rolling quarters

• Initial analysis pointed to a median pay award of 3% for April, when almost half of wage settlements take place each year, with the uncertain economic outlook and increases in the minimum wage and other costs making ‌employers cautious.

• "While increases remain broadly in line ⁠with expectations, there is little evidence of ​upward pressure building," said Sheila Attwood, senior content manager of data and HR insights at Brightmine.

• Brightmine based its ​reading for ‌the first quarter on 111 pay deals, ⁠representing settlements for 373,000 ​employees (Reporting by Andy Bruce Editing by William Schomberg)