Full Breakdown
Marks & Spencer's Pay Rise Falls Short of Real Living Wage
3/4/2026, 12:04:31 AM
Overview of the Pay Increase
Marks & Spencer (M&S) has announced a pay increase for its 55,000 retail employees, effective April 1, 2024. The new hourly wage will rise by at least 6.4%, setting rates at £13.41 across the UK and £14.74 in London. This adjustment exceeds the national minimum wage, which will increase to £12.71 per hour for individuals aged 21 and over. However, M&S's new pay structure no longer aligns with the real living wage, which is currently set at £13.45 per hour in the UK and £14.80 in London.
Criticism from Activist Groups
The decision to withdraw from the commitment to the real living wage has drawn criticism from shareholder activist group ShareAction. Louise Eldridge, head of good work at ShareAction, expressed concern, stating, “With more people struggling to cover basics, it’s worrying to see another major supermarket step back from the only independent benchmark on what people need to take home to meet the cost of living.” Eldridge emphasized that aligning with the real living wage is essential for workers' livelihoods and beneficial for businesses, as it can reduce turnover and attract higher quality talent.
Financial Implications of the Pay Rise
The latest pay rise is projected to cost M&S over £70 million, which the company claims is higher than inflation. Stuart Machin, chief executive of M&S, described the pay increase as a "good cost," highlighting the importance of investing in employees as the company seeks to reshape for growth. He noted, “This investment reflects the central role our people play as we reshape M&S for growth.”
Context of the Retail Sector
M&S's decision comes amid a broader trend among major retailers to increase staff wages. Competitors such as John Lewis and Waitrose have announced a 6.9% pay rise, raising their minimum hourly rate to £13.25 across the UK. Similarly, Sainsbury's is implementing a 5% increase, bringing its hourly pay to £13.23 nationally. Budget retailer Aldi has also announced a pay rise, increasing starting rates to £13.50 nationally and £14.88 within the M25.
Conflicting Reports & Gaps
While M&S's new pay rates exceed the national minimum wage, they fall short of the real living wage benchmarks. This discrepancy has raised concerns among various stakeholders, including employees and advocacy groups, about the adequacy of wages in light of rising living costs.
Verbatim Quotes
- “With more people struggling to cover basics, it’s worrying to see another major supermarket step back from the only independent benchmark on what people need to take home to meet the cost of living, save for the future, and enjoy their free time.” — Louise Eldridge, Head of Good Work, ShareAction
- “Stuart Machin, chief executive of M&S, said: “This is a good cost and I am pleased that we have been able to make this inflation-beating pay award, alongside our leading package of benefits.” — Stuart Machin, Chief Executive, M&S
Marks & Spencer's recent pay rise reflects ongoing challenges in balancing employee compensation with business sustainability, amid rising living costs and competitive pressures within the retail sector.
