Sainsbury’s has announced a £25 million investment in a support package to help its hourly-paid staff with rising household costs during the cost-of-living crisis.

£20 million of the investment will go towards staff pay increases, Sainsbury’s said.

Hourly retail staff at Sainsbury’s and its owned retailer Argos will see their pay rise from £10 to £10.25 and from £11.05 to £11.30 per hour in London.

The new pay rates will take effect from 16 October and Sainsbury’s anticipate that 127,000 of its hourly paid staff across retail, local fulfilment centres, and customer service contact centres will have access to the support package.

The new support package will also give staff access to basic food items during shifts from the first week in October until the end of December and increased discounts at Sainsbury’s and Argos.

The longer-term discounts will help colleagues plan and manage their budgets through Autumn and in the run up to Christmas, Sainsbury’s said.

Simon Roberts, chief executive of Sainsbury’s, commented: “Everyday, I am hearing from colleagues who are really feeling the pressures of the rising cost of living.”

He continued: “That’s why we are doing everything we can to help our colleagues as they face rising bills and living costs this autumn by investing £25 million into a package of support, including an early pay increase.”

He added: “This is the first time we have given two pay rises in the same year.”

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