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UK Average Wages Rose 4.2% in Year to December 2025, Real Terms Growth at 0.8%

Average wages in the UK excluding bonuses increased 4.2% in the three months to December 2025 compared to the same period the previous year, translating to 0.8% growth after adjusting for inflation.

AI Generated12 sources analyzed2 min read20 days ago
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Average wages in the United Kingdom excluding bonuses rose 4.2% in the three months ending December 2025 compared to the same period the previous year, according to House of Commons Library economic indicators. After adjusting for inflation, wages increased by 0.8% in real terms during this period.

The wage growth data comes as part of broader economic indicators showing mixed signals across the UK economy. The private sector business population expanded to 5.7 million enterprises as of January 1, 2025, representing a 3.5% increase from January 2024, according to business statistics compiled by the House of Commons Library.

Services Sector Shows Continued Expansion

The services sector, which represents a significant portion of the UK economy, maintained expansion in February 2026 with a Purchasing Managers' Index (PMI) reading of 53.9, slightly down from 54.0 in January. PMI values above 50 indicate expansion while values below 50 signal contraction. New work in the services sector continued to increase, though not as strongly as in recent months.

The House of Commons Library maintains comprehensive economic dashboards tracking various indicators including economic growth, inflation, trade, employment, government borrowing and debt across UK regions and nations. These indicators provide ongoing assessment of economic performance at both national and regional levels, with detailed breakdowns available by age groups and geographic areas throughout the United Kingdom.

Sources

This article was synthesized from 12 sources.

House of Commons Library - Average earnings: Economic indicatorsHouse of Commons Library - Economic indicators: Key statistics for the UK economyHouse of Commons Library - Regional and National Economic IndicatorsHouse of Commons Library - Average earnings by age and regionHouse of Commons Library - UK labour market statisticsHouse of Commons Library - The UK economy: A dashboardHouse of Commons Library - Business and consumer confidence: Economic indicatorsHouse of Commons Library - Employment in the UK: Economic indicatorsHouse of Commons Library - Components of GDP: Economic indicatorsHouse of Commons Library - London's contribution to the national economyHouse of Commons Library - Service industries: Economic indicatorsHouse of Commons Library - Business statistics
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