[UK] Nearly half of employees under 34 don’t expect a pay rise in 2026

In the UK, new research has revealed that nearly half of workers under the age of 34 do not expect to see a pay rise in 2026. A greater number don’t even expect an end-of-year bonus, Consultancy.uk reports.

A previous survey by the employee benefits platform Zest found that 49 per cent of staff in the UK are concerned about rising energy bills and 41 per cent have asked for more financial support from employers to manage those cost spikes. 

However, when Zest carried out a second poll months later, the results reportedly suggested that employers may have moved further in the opposite direction, especially for young staff, who on average are already on lower salaries.

It revealed that 47 per cent of employees aged 18-34 years old are not expecting a pay rise this year, while 55 per cent expect they won’t receive a bonus at the end of 2026.

According to Zest, the position employers are taking could alienate the future talent companies will ultimately rely on to become their future leadership. The stats seem to confirm this: 64 per cent of younger employees told Zest they would consider leaving their jobs if their employer was unable to increase salaries.

The UK’s recent energy price cap rise saw average yearly bills jump by £221 to almost £1,900, making financial support even more of a priority. 

Overall, 66 per cent of employees are now reportedly calling for more financial support from their employer, with employer contributions to energy bills ranked as one of the most popular benefits. 

Reward strategies require major improvement overall: 53 per cent of younger employees stated that their benefits package is inadequate and 74 per cent want their employer to invest more in their benefits offering.

Joy Waugh - principal consultant at Zest - said, “As pay rises continue to lag behind, amid rising living costs and energy bill spikes, employees are demanding greater financial support from their employers through their reward packages. Offering effective rewards to all employees, especially younger workers, is key to not only boosting morale and performance but also supports with talent attraction and retention. 

“For employers, it’s vital that they boost employee communication and engagement to understand what support employees are calling for, deliver this seamlessly and ensure that the workforce is accessing this. Failure to do so ultimately curbs commercial performance and growth.”

Source: Consultancy.uk

(Quote via original reporting)

In the UK, new research has revealed that nearly half of workers under the age of 34 do not expect to see a pay rise in 2026. A greater number don’t even expect an end-of-year bonus, Consultancy.uk reports.

A previous survey by the employee benefits platform Zest found that 49 per cent of staff in the UK are concerned about rising energy bills and 41 per cent have asked for more financial support from employers to manage those cost spikes. 

However, when Zest carried out a second poll months later, the results reportedly suggested that employers may have moved further in the opposite direction, especially for young staff, who on average are already on lower salaries.

It revealed that 47 per cent of employees aged 18-34 years old are not expecting a pay rise this year, while 55 per cent expect they won’t receive a bonus at the end of 2026.

According to Zest, the position employers are taking could alienate the future talent companies will ultimately rely on to become their future leadership. The stats seem to confirm this: 64 per cent of younger employees told Zest they would consider leaving their jobs if their employer was unable to increase salaries.

The UK’s recent energy price cap rise saw average yearly bills jump by £221 to almost £1,900, making financial support even more of a priority. 

Overall, 66 per cent of employees are now reportedly calling for more financial support from their employer, with employer contributions to energy bills ranked as one of the most popular benefits. 

Reward strategies require major improvement overall: 53 per cent of younger employees stated that their benefits package is inadequate and 74 per cent want their employer to invest more in their benefits offering.

Joy Waugh - principal consultant at Zest - said, “As pay rises continue to lag behind, amid rising living costs and energy bill spikes, employees are demanding greater financial support from their employers through their reward packages. Offering effective rewards to all employees, especially younger workers, is key to not only boosting morale and performance but also supports with talent attraction and retention. 

“For employers, it’s vital that they boost employee communication and engagement to understand what support employees are calling for, deliver this seamlessly and ensure that the workforce is accessing this. Failure to do so ultimately curbs commercial performance and growth.”

Source: Consultancy.uk

(Quote via original reporting)