A recent study by Incomes Data Research (IDR) has unveiled the outlook for pay rises among employers this year. According to the findings, 28% of employers are anticipating higher pay increases for their hard-working employees in 2026 compared to the previous year.
The study also revealed that 44% of employers expect pay growth to remain steady, while 28% are considering lower pay rises for their workforce. When it comes to the percentage of pay rises, nearly 39% of respondents foresee an increase between 3% and 3.49%, with 22% expecting slightly higher raises ranging from 3.5% to 3.99%.
Only 11% of the surveyed employers anticipate a pay rise of 4% or more. Factors influencing these decisions include affordability and inflation. IDR collected responses from 121 organizations, with 89 of them yet to finalize their 2026 pay awards.
Zoe Woolacott from IDR highlighted the impact of inflation on pay decisions, noting that rising inflation rates have influenced pay adjustments. She emphasized that inflation remains a significant concern for employers based on the poll results.
In other news, approximately one million individuals are facing fines for missing the self-assessment deadline. The HM Revenue & Customs (HMRC) reported that 11.48 million people successfully submitted their tax returns by the January 31 deadline, with a vast majority (97.25%) using online filing methods.
Despite a last-minute rush, where 475,722 taxpayers filed on the final day and 27,456 submitted in the last hour, around one million individuals failed to meet the deadline. These late filers are subject to an initial £100 fixed penalty, even if no tax is owed, and could incur additional daily penalties of £10 up to a maximum of £900 if the return remains outstanding after three months.
Moreover, households in need may qualify for support through the Surrey County Council’s Household Support Fund, which offers free supermarket vouchers worth up to £300. Residents experiencing financial difficulties can access these vouchers through the Everyday Essentials E-Voucher scheme at select supermarkets.
Santander has introduced a new mortgage product geared towards first-time buyers, featuring a 98% loan-to-value ratio, a five-year fixed rate of 5.19%, no product fee, and £250 cashback. The ‘My First Mortgage’ requires a minimum deposit of £10,000, with loan amounts ranging from £190,000 to £500,000.
Additionally, recent data from Worldpanel by Numerator indicates a slight easing in food price inflation, with grocery prices increasing by an average of 4% last month, down from 4.3% in December. The study also highlights a growing trend of consumers opting for supermarket own-brand products and taking advantage of promotional offers to manage costs effectively.
Lastly, the Financial Conduct Authority (FCA) reported a decline in insurance costs, resulting in an annual saving of approximately £157 million for consumers who pay monthly. The FCA noted a 4.1 percentage point reduction in interest rates for premium finance since 2022, leading to savings on car and home insurance policies. Graeme Reynolds from the FCA emphasized the importance of fair value for consumers and the regulator’s commitment to monitoring market practices for consumer protection.