According to the Chartered Institute of Personnel and Development's (CIPD) survey, British employers expect to raise pay by 1.8% in the next 12 months, down from their previous expectations for a rise of 2.0% three months ago.

The labour market analyst at CIPD Gerwyn Davies said that there are only "very modest improvements" in wages in the U.K. despite the strong labour market.

"Word has spread that inflation is expected to remain very low this year so it's no surprise that many employers are hitting the pause button on pay," Davies noted.