ExCo’s recent decision on the 2025
26 pay award
11 February 2026
Dear Nikhil,
We would like to express our disappointment regarding ExCo’s recent decision on the 2025
26 pay award. We note that the pay increase will amount to an average of 3.4%. While it is
said that this headline figure is in line with inflation, it is evident on closer examination that a
significant number of colleagues will receive less than 3.4%. This therefore amounts to a real
terms pay cut for many people at a time when we are being asked to work harder to deliver
our Strategy and meet organisational objectives. We are also concerned that the tops of bands
are not moving up for the majority of staff, save for directors. This feels like an “up or out”
policy by stealth.
This is in addition to the increased commuting costs flowing from the decision on hybrid
working. We note the decision to make a £300 payment towards equipment to work effectively
at home. This payment is insufficient to compensate for increased commuting costs.
Survey results on pay
Unite recently surveyed our members on pay, progression, and reward. The results show a
clear and consistent message that the current system is not protecting living standards, lacks
credibility, and is now driving retention risk.
What staff are telling us, in numbers
- 89 percent want a pay rise above inflation in 2026
- 83 percent believe pay should at least match inflation regardless of grade or performance
- 71 percent want a guaranteed base uplift plus a smaller Performance Related Pay (PRP)
element - Only 3 percent support pay being solely performance determined
- 83 percent say pay matrices and progression rules are unclear or inconsistently applied
- 44 percent of staff near the top of their band say they have no fair route to progress
- Only 5 percent believe top of band progression works
- 88 percent say increased office attendance costs must be reflected in pay
- The recent decision to increase mandated office attendance from 40 percent to 50
percent represents a significant increase in the cost of working. For many staff, an
additional day in the office each week means higher travel, food, and childcare costs.
A conservative estimate is that this will cost staff several hundreds of pounds per year, and
for some staff with longer commutes or complex caring arrangements potentially over £1,000
annually. When combined with a below inflation pay rise, this is effectively lost income
and leaves staff with materially less money in their pockets during an ongoing cost of living
crisis. - 66 percent say pay and reward are a top reason they would consider leaving within 12
months
Free text responses reinforce these figures. Staff report real terms pay erosion despite strong
performance, inconsistent and opaque PRP and At our Best awards (AOB) outcomes, divisive
grading structures, and a growing sense that effort and expertise are not being fairly rewarded.
What we are asking for
We are asking the FCA to commit to a policy of pay awards for all staff that at least match
inflation, regardless of grade. Performance pay should be a secondary uplift, determined on a
transparent and consistent basis. Progression frameworks should deliver real movement,
including for staff at the top of bands, if the FCA is serious about retention and morale.
Yours sincerely,
FCA and PSR Unite the Union Branch
