Bank News - Pay Awards
Pay Award Update
As we start the new year, we want to take a moment to reflect on a landmark year for Advance Union. This year saw our first-ever pay ballot and the successful implementation of the 2025 pay award, agreed by an overwhelming 81% of members as part of a two-year agreement. Full details of this award are here
Looking Back at 2025
The first year of the two-year deal delivered:
- S1 & S2: 4% increase for that below mid-point, 3.5% for those above, with a minimum increase of £1,000 (pro-rated for part-time).
- S3: 3.25% / 2.75% increases.
- S4: 3% / 2.5% increases.
- S5: Discretionary awards.
This was a significant achievement, providing certainty and fairness during a period of economic change.
What’s Coming in March 2026
Year two of the agreement will be applied from 1 March 2026, delivering:
- S1 & S2: 3% increase for those below mid-point, 2.5% for those above, with a minimum increase of £800 (pro-rated).
- S3: 2.25% / 1.75% increases.
- S4: 2% / 1.5% increases.
- S5: Continued discretionary awards.
PLUS:
- Company-funded Private Medical Insurance for all S1 & S2 colleagues from January 2026 for everyone who opted in during the benefits window.
- Retention of the £500 “You Choose” allowance.
- Range progression replacing pay progression, benefiting all members, not just certain roles.
Why This Matters
When combined, these changes represent:
- Average total award value of 12.5% for S1 and 9.3% for S2 over two years.
- A major step forward in benefits and pay certainty for members
Economic Context
Inflation has remained stubborn throughout 2025, despite forecasts predicting a sharper decline. While there are now signs that it is beginning to ease, we recognise the challenges this has posed for many households, particularly on key household weekly costs such as food.
Despite this backdrop, it’s important to remember that the two-year pay agreement we balloted on earlier this year still represents a very substantial package for the majority of our members, delivering certainty and fairness during a period of economic uncertainty.