[UK] 7% pay hike from M&S to help workers with cost of living

Marks & Spencer will raise hourly pay for over 40,000 UK store workers by 7 per cent from April, Reuters reports.

This is the third rise in just over two years and one that has the potential to catch the attention of the Bank of England, which is worried about inflationary pressure in the economy.

On February 28, M&S announced that its customer assistants will receive £10.90 an hour, a 70 pence increase from the current £10.20 rate.

The Bank of England is reportedly paying close attention to pay settlements as it considers further rises in interest rates.

Earlier in February, Bank of England Governor Andrew Bailey had expressed concerns about wage-setting, despite signs that the inflation surge - which hit 11.1 per cent in October before falling to 10.1 per cent in January - was abating.

M&S previously raised its hourly pay in September 2022. It said the latest rise reflects the accelerating cost of living its workers are facing and means that pay has risen by over 20 per cent since the start of 2021.

However, the rise is also reportedly affected by the UK's tight labour market. Data released in February showed that, despite being on the brink of recession, the nation's jobless rate held close to five-decade lows and employment had grown.

Rival supermarket giants Tesco and Asda have both recently announced pay rises for workers.

From April the government-mandated National Living Wage is also on the rise. It will go up to £10.42 pounds an hour, an increase of 9.7 per cent.

M&S said workers in London will get £12.05 an hour, up from £11.25 pounds. All workers will continue to receive benefits including a staff discount, pension contribution and participation in share schemes.

The investment will reportedly cost the retailer £60 million.

Source: Reuters

(Link via original reporting)

Marks & Spencer will raise hourly pay for over 40,000 UK store workers by 7 per cent from April, Reuters reports.

This is the third rise in just over two years and one that has the potential to catch the attention of the Bank of England, which is worried about inflationary pressure in the economy.

On February 28, M&S announced that its customer assistants will receive £10.90 an hour, a 70 pence increase from the current £10.20 rate.

The Bank of England is reportedly paying close attention to pay settlements as it considers further rises in interest rates.

Earlier in February, Bank of England Governor Andrew Bailey had expressed concerns about wage-setting, despite signs that the inflation surge - which hit 11.1 per cent in October before falling to 10.1 per cent in January - was abating.

M&S previously raised its hourly pay in September 2022. It said the latest rise reflects the accelerating cost of living its workers are facing and means that pay has risen by over 20 per cent since the start of 2021.

However, the rise is also reportedly affected by the UK's tight labour market. Data released in February showed that, despite being on the brink of recession, the nation's jobless rate held close to five-decade lows and employment had grown.

Rival supermarket giants Tesco and Asda have both recently announced pay rises for workers.

From April the government-mandated National Living Wage is also on the rise. It will go up to £10.42 pounds an hour, an increase of 9.7 per cent.

M&S said workers in London will get £12.05 an hour, up from £11.25 pounds. All workers will continue to receive benefits including a staff discount, pension contribution and participation in share schemes.

The investment will reportedly cost the retailer £60 million.

Source: Reuters

(Link via original reporting)