Supermarkets Urged to Restore Real Living Wage

Investor activists ShareAction are urging the UK's largest grocery chains to restore worker pay in line with the real living wage. Several major supermarkets, including M&S, the Co-operative Group, Tesco, and Sainsbury's, have stepped back from matching this voluntary benchmark in recent years. These companies now pay above the national minimum wage, which rose to £12.71 per hour for those aged 21 and over from April 2024, but not at the real living wage level of £13.45 per hour outside London (£14.80 in London).

Aldi and Lidl are currently the only major supermarkets paying entry-level staff nationwide at the real living wage rate, with Aldi's hourly pay exceeding the benchmark. The John Lewis Partnership matches the real living wage only for employees within the M25. ShareAction plans to make commitments on pay a major focus at upcoming shareholder meetings, emphasizing the business benefits of better wages despite cost pressures on the sector.

Supermarkets like Sainsbury's and Tesco highlight significant wage increases over the past five years, while Co-op stated it aligns lowest pay rates with the Real Living Wage without formal accreditation. M&S noted it has never formally committed to the living wage. ShareAction's head of good work, Louise Eldridge, expressed disappointment at the shift away from matching the real living wage, stressing its importance for staff covering basic living costs.