After a year of headline-grabbing pay rises, the UK labour market is entering a more restrained phase.
Wage growth is easing as inflation cools and employers grow more cautious about costs. The era of across-the-board bumper wage increases appears to be fading.
But the window for negotiation has not closed.
Organisations are still hiring and still competing for key skills. In some industries, shortages remain acute.
For employees willing to prepare properly, there is still scope to push for more – whether that means securing a raise in your current role or negotiating a stronger offer elsewhere.
Is there still room to negotiate?
“There’s always room for negotiation when discussing job offers,” says Emma Kwiatkowski, director at recruitment firm Hays. “We know that organisations are still increasing salaries: eight in ten (82 per cent) increased salaries last year and a similar number (80 per cent) plan to do the same in 2026, according to our latest research.”
However, the balance of power is shifting. Dr Duncan Brown, principal associate at the Institute for Employment Studies, says the premium traditionally enjoyed by job movers has narrowed.
“Throughout the 2010s, a decade overall of low inflation and austerity, people moving jobs on average got much higher pay awards than people staying put – three to four times as high,” he says.
Now, many employers are adopting what he calls a “peanut butter approach” – spreading modest increases evenly across staff rather than awarding large individual rises. That often translates into average uplifts of around three per cent, he says.
How much should you ask for?
There is no single “right” figure. It depends on your industry, role and how in-demand your skills are.
“Uplift varies by sector and seniority,” says Kwiatkowski. “Our research found that salary increases for those in-post were higher than average in industries such as legal, business support, and accountancy and finance.”
She adds: “We also see that candidates with specialist skills, in the tech industry for example, are able to negotiate more favourable salaries. Employers are willing to invest where skills are scarce.”
Brown says focusing on your own occupation is crucial. “If you are an employee seeking higher pay, either internally in your organisation or by moving jobs, researching the situation in your own sector and occupation is really important right now, rather than relying on general national statistics,” he says.
A rise of 10 to 20 per cent may still be achievable when moving roles in the right market. Within your current organisation, tighter pay bands mean you will need a carefully prepared case.
How to negotiate in your current job
Preparation is essential. “For professionals looking to negotiate a pay rise in their current role, it’s important to remember: if you don’t ask, you don’t get,” Kwiatkowski says. “Putting together a strong business case is more important than ever.”
That starts with market research. “Mapping responsibilities and achievements against market-standard salary levels based on skills, specialism or region gives the best chance of a positive outcome,” she says.
You also need evidence of your value. “You need to show your boss, and most likely your HR team as well, why you deserve a pay increase,” she says. “Show recent achievements and increased responsibilities, backed up with facts and figures such as revenue generated, improved client relationships or costs saved.”
Be ready for questions, she adds, and avoid pushing for an instant answer.
If the outcome is negative, think carefully about your next step. “There is no guarantee that your proposal will go well,” Kwiatkowski says. “If you’re not successful, you need to decide whether you plan to stay on or not.”
How to negotiate a new job offer
A job offer is often your strongest point of leverage. Benchmark the role carefully, understand what similar positions pay locally and decide in advance what you would accept.
But, remember that salary is only part of the package. “Salary amount isn’t the only thing up for negotiation,” Kwiatkowski says.
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“Candidates can also ask for benefits to be included in the overall package.”
Brown warns against focusing solely on headline pay and potentially being seduced by a higher salary while overlooking a weaker pension.
In addition, bonuses, share schemes and flexible working can sometimes be easier to adjust than base pay.
Negotiating pay in 2026 is less about bravado and more about preparation. Research your market, build a clear case, understand your total reward and be realistic about what your sector can offer.
Across-the-board bumper rises may be rarer than last year. But for those who understand their value – and can prove it – there is still room to move.
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