Lidl To Pay Above Living Wage At Cost Of £9m

Lidl will become the first supermarket to raise its minimum pay above the national living wage which comes into force next year.

The budget chain will give a pay rise worth £1,200 a year for more than half its workforce from 1 October.

It will pay a minimum of £8.20 an hour across England, Scotland and Wales and £9.35 per hour in London - a move that will cost the firm £9m.

The hourly amount goes beyond the £7.20 compulsory national living wage announced by the Chancellor in his summer Budget.

Lidl has also pledged to increase wages further if the campaign group Living Wage Foundation recommends a higher rate of pay in November.

The supermarket announced the move as a string of retailers warned the introduction of the National Living Wage next April risks being passed on to customers in the form of price increases.

Next and the owner of Costa Coffee have been among high street chains rounding on the policy, which guarantees workers aged 25 and over at least £7.20 an hour initially.

Their concerns have been supported by the head of the business lobby group the CBI, John Cridland, who recently described the wage plan as a "gamble."

A Lidl spokeswoman said its prices would not rise as a result of the wage increases it was bringing in.

Ronny Gottschlich, chief executive of Lidl UK, said: "We recognise that every employee forms an integral part of team Lidl, and each individual's contribution is valued.

"It's therefore only right that we show our commitment, in the same way that the team commit to the business and our customers each and every day, by ensuring a wage that supports the cost of living."