UK Supermarkets Implement £13+ Hourly Pay Rules in March 2026
In response to the persistent cost of living crisis, seven leading UK supermarkets are introducing significant pay increases for their staff, with hourly rates rising to at least £13 starting in March 2026. This move comes as the legal minimum wage is set to increase to £12.71 per hour in April 2026, but many retailers are voluntarily exceeding this benchmark by adopting rates closer to the Real Living Wage, currently £13.45 as calculated by the Living Wage Foundation charity.
Aldi Leads with Industry-High Pay Rates
Aldi has announced its second wage increase since the new year, positioning itself as a top payer in the sector. From April 2026, store assistants will earn £13.50 per hour nationally, with London staff receiving £14.88. Both rates increase with length of service, benefiting approximately 28,000 employees. Giles Hurley, Chief Executive of Aldi UK and Ireland, emphasized that every team member is fundamental to the company's success and deserves recognition for their hard work in delivering value to customers.
Lidl Invests £29 Million in Staff Compensation
Lidl is making a further £29 million investment in colleague pay, marking its seventh pay rise announcement since 2023. From March 1, 2026, entry-level hourly pay will rise to £13.45 nationally, increasing to £14.45 with service, while London rates will go from £14.35 to £14.80, rising to £15.30. This benefits all 35,000 colleagues and makes Lidl the only supermarket to match the Real Living Wage nationwide and the London Living Wage consistently.
Other Major Retailers Follow Suit
Tesco is increasing wages for over 300,000 retail workers, with shop floor employees expected to earn around £13.35 per hour nationally and £14.71 in London from March 2026. Marks & Spencer will raise pay from £12.60 to £13.41 per hour nationally and from £13.85 to £14.74 in London from April 1, affecting about 55,000 employees.
Sainsbury's will increase hourly pay to £13.23 nationally and £14.54 in London from March 2026, providing full-time hourly-paid colleagues with an additional £1,200 annually. CEO Simon Roberts highlighted that this five percent raise rewards colleagues for their exceptional service and productivity, supported by Usdaw General Secretary Joanne Thomas, who welcomed the above-inflation increase.
Asda currently pays £12.60 per hour nationally and £13.82 in London as of October 2025, benefiting around 115,000 employees. Chief People Officer Hayley Tatum MBE noted over £500 million invested in retail pay over four years, complemented by enhanced benefits. Morrisons workers earn £12.21 nationally and £13.06 in London, according to industry reports.
These pay rises reflect a broader trend in the retail sector, where supermarkets are competing to attract and retain staff by offering competitive wages amid economic pressures. The initiatives demonstrate a commitment to supporting employees during challenging times, with many companies emphasizing the crucial role their teams play in business success and customer service.
