Tesco staff to see pay rise to £10.10 an hour

Tesco staff are set to see pay rise to £10.10 an hour from the end of July, the supermarket giant has announced.

The UK's biggest private employer said store and warehouse workers' wages will rise by 55p, up from £9.55 an hour.

Meanwhile, its delivery drivers and click and collect assistants will receive a 90p increase to £11 an hour from May.

Union Usdaw said the pay was "testament" to the hard work of staff at what it said was a "difficult time".

The move from Tesco for minimum pay to be £10.10 an hour from 24 July brings it in line with Lidl, which became the UK's highest-paying supermarket in March with the same hourly rate.

Jason Tarry, chief executive officer of Tesco UK & ROI, said employees were getting a "well-deserved pay rise, more access to extra hours, and setting out a long-term commitment and investment in their careers at Tesco".

"These investments in our colleagues are central to making Tesco what we truly want it to be: a great place to work for all, a place that attracts and retains the best talent in the industry," he added.

Tesco store workers in London will get a further 68p on top of the basic wage rise, so will be paid £10.78 per hour.

Alongside pay rises, Tesco is to increase its "colleague clubcard" discount allowance by £500 to take the annual total allowance for all colleagues to £1,500 with immediate effect.

The company also said all new contracts would be based on a minimum of 16 hours per week.

"We will always offer any vacant hours to colleagues working fewer than 16 hours a week, before recruiting externally," it added.

Usdaw national officer Daniel Adams said the union was "pleased" to secure a pay deal that not only delivered "the highest hourly rate of pay in the sector", but also gave members a right to request a "normal hours" contract and ensured a minimum 16-hour contract in the future.

People in the UK are facing increased pressure from living costs, with inflation rising at its fastest rate for 30 years, driven up by surging fuel, energy and food prices.

The National Living Wage, which applies to workers over the age of 23, has increased from £8.91 per hour, to £9.50 per hour from this month. The National Minimum Wage, for those aged 21 to 22, has gone up to £9.18.

The rate at which prices rise has been forecast to reach 8.7% in the final three months of 2022.