UK private wages at weakest since 2020 as public sector pay surges

Private sector pay growth slowed to 2.8% in the three months to June 2026 — its weakest since October 2020 — while public sector pay rose 6.1%, driven by earlier NHS staff settlements. The ONS's Liz McKeown noted "some softening" in the jobs market. Unemployment held at 4.9%. The widening gap complicates the Bank of England's interest rate decisions.