LONDON (Reuters) -Pay awards granted by British employers are likely to hold at their current 3% level over the next 12 months as caution dominates and the impact of high inflation fades, data firm Brightmine said on Wednesday.

With the Bank of England watching for weaker inflation pressure before resuming its interest rate cuts, Brightmine said only 23% of employers it surveyed expected to raise pay awards, with 45% seeing no change and 32% predicting lower settlements.

In 2023, pay awards were running at an average of 6% – double their current rate – after a spike in inflation to more than 11% in October 2022 following Russia’s full-scale invasion of Ukraine.

The expected award of 3% is below the most recent reading of headline inflation which stood at 3.8% in September.

Affordabilit

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