Lidl to pay living wage despite £9m cost

Lidl has said it plans to pay its staff the minimum hourly rate recommended by the Living Wage Foundation, becoming the first supermarket in the UK to do so.

From October 1, the budget chain will pay a minimum of £8.20 per hour across England, Scotland and Wales, with that rate rising to £9.35 an hour in its London stores. While the move will see many of its staff given a pay rise of around £1,200 a year, Sky News has reported that the wage hike will cost Lidl an additional £9m.

The announcement came as a number of UK retailers, including the owner of Costa Coffee, warned that introducing the government’s National Living Wage in April 2016, a rate of £7.20 an hour for workers over 25, would result in price increases.

However, a spokeswoman for Lidl confirmed that the budget supermarket’s prices would not rise as a result of the changes. Further, the firm has pledged to pay even higher hourly rates if the Living Wage Foundation sets its recommended rate higher than expected in November.

According to Sky News, the company’s UK chief executive, Ronny Gottschlich, 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.”