UK Regular Wage Growth Slows to 3.6% in Three Months to February 2026

The monthly ritual of checking pay slips just got a bit more sobering for workers across Kent and the UK. Regular wage growth slowed to 3.6% in the three months to February 2026, marking another step down from the 3.8% recorded in the previous period.

The Office for National Statistics announced the latest earnings data, showing total pay growth including bonuses also declined to 3.8%, down from 4.1% in the previous three-month period.

The Numbers Behind the Slowdown

Behind these headline figures lies a more complex picture of Britain’s labour market. Private sector workers saw regular earnings grow by 3.4% annually, even as their public sector counterparts experienced a notably higher 7.2% increase.

But that public sector figure comes with a caveat. The growth rate reflects what economists call “base effects” – the timing difference of when pay rises were awarded in 2025 compared to 2024, rather than indicating a genuine acceleration in public sector pay improvements.

The real sting comes when inflation enters the equation. After adjusting for the Consumer Prices Index including housing costs, regular pay growth shrinks to just 0.5% annually. That’s the difference between feeling like you’re getting ahead and barely treading water.

A Year-Long Decline

This downward trajectory isn’t new. Wage growth has been sliding for months, with the last time regular earnings annual growth fell below 4.2% being November 2021 to January 2022, when it hit 4.1%.

The pattern reflects a cooling labour market where the post-pandemic surge in pay rises is gradually moderating. Yet for workers watching their household budgets, the 0.5% real-terms growth means their actual spending power is increasing at a snail’s pace.

Different sectors tell different stories. As private sector employees face the reality of 3.4% nominal growth, public sector workers – including NHS staff, council employees, and police officers – are seeing higher percentage increases, though these largely reflect catch-up adjustments rather than sustained improvements.

Key Takeaways

• Regular wage growth excluding bonuses fell to 3.6% in three months to February 2026, down from 3.8% previously
• Real purchasing power growth remains weak at just 0.5% when adjusted for inflation
• Public sector pay growth of 7.2% reflects timing differences in pay awards rather than genuine acceleration

What This Means for Kent Residents

Kent workers can expect their pay packets to follow these national trends, with private sector employees likely seeing similar 3.4% regular pay growth even as public sector staff across NHS Kent and Medway, local councils, and Kent Police may experience the higher nominal increases. However, with real purchasing power growing at just 0.5%, Kent households should budget carefully and consider that their actual spending power is barely keeping pace with rising costs. Businesses across the county may find some relief from moderating wage pressures, though recruitment and retention challenges are likely to persist in key sectors.