Ryan FowlerAnnual growth in UK average weekly earnings slowed to below 4% in the three months to January 2026, according to the latest figures from the Office for National Statistics.
Regular pay, excluding bonuses, rose by 3.8%, while total pay increased by 3.9%, continuing a broader easing in wage growth over the past year.
In real terms, adjusted for inflation using CPIH, regular pay rose by 0.4% and total pay by 0.5%, indicating only modest improvements in household purchasing power.
Using CPI as a measure, real regular pay growth was 0.5% and total pay 0.7% over the same period.
Public sector earnings growth remained stronger at 5.9%, compared with 3.3% in the private sector, although the ONS said this was influenced by a base effect from pay rises being brought forward in 2025.
Average weekly earnings were estimated at £742 for total pay and £690 for regular pay in January 2026, continuing a long-term upward trend despite the recent slowdown in growth rates.
Sector data showed that, after the public sector, wholesaling, retailing, hotels and restaurants recorded the strongest annual growth in regular pay.
