FX.co ★ UK Wage Growth Cools as Average Earnings ex Bonus Ease to 3.8% in January

Average earnings excluding bonuses in the United Kingdom slowed to 3.8% in January 2026, down from 4.2% recorded in December 2025, according to data updated on 19 March 2026.

The deceleration in wage growth suggests a moderation in underlying pay pressures at the start of the year. As bonuses are excluded from this measure, the decline points to a cooling in regular pay, a key gauge closely watched by economists and policymakers assessing domestic inflationary forces and household income dynamics.

The easing from December’s 4.2% pace to January’s 3.8% may signal a shifting labour market backdrop, with potential implications for consumer spending and the broader trajectory of the UK economy as 2026 progresses.