Marks & Spencer (M&S) and DIY chain B&Q have separately announced that they will be increasing pay for their employees.

Both pay increases are over the UK government's 2025 National Living Wage of £12.21 per hour for those aged over 21.

M&S said that it is investing £95 million into staff pay, which is the biggest investment it has ever made.

From 1 April, the retailer said that pay for around 50,00 employees working as UK customer assistants will increase from £12.00 to £12.60 per hour. For customer assistants working in London, the hourly rate will increase from £13.15 to £13.85, representing a five per cent increase on last year.

This is in line with the Real Living Wage of £12.60 per hour and equates to a rise of £98 per month for those living in London.

M&S said that UK team support managers will also see pay increase from £13.05 to £13.65, while for those in London it will increase from £14.20 to £14.90.

Employees also receive access to a range of benefits such as healthcare and discounts which M&S claims provides a boost to the new hourly rates making them worth up to £15.40.

The company said it has invested over £285 million since 2022, increasing the hourly rate by 26 per cent which it said is double the rate of inflation over the same period.

“Following the government’s recent increases in tax and national insurance contributions, it’s no secret that M&S and indeed the entire retail sector has some significant cost headwinds to face into in the new financial year,” said Stuart Machin, chief executive at M&S. “However, I have always believed that we should not allow these headwinds to impact our hourly paid colleagues, which is why today, for the third year in a row, we are making a record investment in our retail pay offer.”

B&Q

Meanwhile, B&Q has announced it will increase minimum pay by four per cent to £12.71, with pay rising to £14.05 for employees based in London.

The pay is 50p more than the National Living Wage, with the company claiming it is one of the highest base national rates of any major UK retailer.

Employees will receive the pay rise in April 2025, which B&Q claims will be worth around £955.50 per year for a full-time worker.

The company added that while the government’s minimum wages differ by age, as a multi-generational employer it believes everyone deserves the same pay for the work they do regardless of age so it will pay the same minimum hourly rate to all employees including apprentices.

“We believe rewarding our colleagues fairly is a critical part of delivering growth for our business and continually improving the experience we provide for our customers,” said Graham Bell, chief executive at B&Q. “We also remain committed to supporting our colleagues’ professional development through our training offering – including our apprenticeship scheme which has already been completed by over 2,000 colleagues.”

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