Tesco and Sainsbury's among supermarkets under fire in 'real Living Wage' pay row

Patrick O'Donnell
Sun, 05 Apr 2026 23:01:02 +0000

Supermarkets, including Tesco and Sainsbury's, are under pressure to bring staff wages back in line with the real Living Wage, currently £13.45 per hour.

Investor campaign group ShareAction is pressing Britain's largest supermarket chains to go above and beyond the National Living Wage despite growing business costs.

Several major retailers have retreated from matching this voluntary benchmark in recent years as the sector grapples with mounting cost pressures.

Tesco and Sainsbury's, the two dominant players in UK grocery, stopped aligning pay with the real living wage in 2025.

Marks & Spencer was revealed last month to have departed from the standard despite announcing a wage increase of at least 6.4 per cent.

The Co-operative Group has also abandoned what it previously described as a "long-standing commitment" to the benchmark

On April 1, the National Living Wage increased to £12.71 per hour for workers aged 21 and above under changes introduced by Chancellor Rachel Reeves.

This voluntary standard is independently calculated based on actual living costs and sits at £13.45 nationally, rising to £14.80 in the capital.

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However, the sector faces significant financial strain, including elevated National Insurance contributions following last year's tax changes.

Aldi and Lidl remain the sole major supermarkets offering entry-level shop workers the real living wage across the entire country, with Aldi's hourly rate actually surpassing the benchmark.

The John Lewis Partnership, owner of Waitrose, raised shop floor wages by 6.9 per cent from April but only matches the real living wage for staff working inside the M25.

ShareAction has signalled that securing firm pay commitments from retailers will be a "major focus" at forthcoming annual general meetings.

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The activist investor group intends to use these shareholder gatherings to apply pressure on companies to make concrete pledges on worker remuneration.

Louise Eldridge, head of good work at ShareAction, said: "It's disappointing to see supermarkets like M&S, Sainsbury's and Tesco moving away from matching the real Living Wage pay rates after setting the pace in recent years."

She acknowledged retailers face genuine pressure but argued the latest living wage increase reflects higher living costs, making adequate pay essential.

A spokeswoman for Sainsbury’s, which increased worker pay by five per cent in April, cited the business had raised hourly wages by 42 per cent in the past five years.

A Co-op spokesperson said: “In recent years we have aligned our lowest rates of pay with the Real Living Wage, although we are not formally accredited as a Real Living Wage employer.

M&S stressed it has never formally committed to the real living wage, while Tesco said its wages have risen by 43 per cent over the last five years, adding its workers “also benefit from a competitive reward package.”