News in Depth: April 24, 2025

As inflation shows signs of retreating and discussions about wages rising intensify, workers are finally being told what they’ve waited years to hear: their pay is going further. However, a closer look at the numbers reveals a more complex and uneven reality. Collating this information is challenging because figures vary depending on sources, methodologies, and whether bonuses are included.

Average Salary Figures: Mean vs. Median

According to the latest data from the Office for National Statistics (ONS), the average annual salary for UK workers is £31,602, rising to £37,430 for full-time roles. Yet other reports cite a mean weekly wage of £711, which amounts to nearly £37,000 a year—a noticeable £2,000 jump from last year. These figures aren’t contradictory but highlight the inconsistency between median vs. mean, regular pay, and bonus inclusion.

For workers trying to understand their income or negotiate a pay increase, these varying figures can distort what counts as “average.” Should you feel underpaid if you earn £35,000? Is £40,000 “above average”? It depends entirely on how the data is produced!

Regular pay has increased by 5.9% in the three months to January, outstripping the 2.8% inflation rate, giving workers their first taste of real income growth in years. For a workforce battered by the cost-of-living crisis, this is long-awaited progress. Yet not everyone is feeling the benefit.

Read more on Annual Salary Data and our analysis of Wage Growth Trends.

A Two-Speed Pay Recovery

Where you live in the UK plays a huge role. Workers in London average £853 a week, far outpacing the £661 earned in the North East. Meanwhile, pay growth in the private sector slightly outpaces that in the public sector, even though both saw similar year-on-year gains.

However, the UK’s 3 million lowest-paid workers—many now on the National Living Wage of £12.21—still struggle to cover basic costs. These workers, disproportionately younger and in part-time roles, are not benefiting equally from national wage growth trends.

Explore our deep dive into Regional Pay Differences and why some areas are moving faster than others.

Experience Matters—Until It Doesn’t

Salaries typically follow a familiar arc: low in your teens and twenties, rising through your thirties, and peaking in your forties. From your fifties onward, incomes often decline due to health issues, reduced hours, or early retirement. As the retirement age shifts upward, many older workers rely more on pensions than pay—a transition that often means less income.

Key point: Even though headline figures show salary growth, the distribution is uneven across age groups, sectors, and regions.

Conclusion

So, is your salary really rising? Statistically, yes—but the bigger question is by how much and compared to whom? Headline figures offer optimism, yet they often mask the unevenness beneath. For some, 2025 marks the start of financial recovery. For others—especially those earning the least—meaningful progress still feels out of reach. Until pay growth becomes both widespread and equitable, statistics alone won’t tell the whole story.

The WEU will continue to keep its members updated on UK salaries and related developments.