M&S Pay Rise 2026: London Wages to Hit £14.74 as Retailer Invests £70m

In early 2026, Marks & Spencer confirmed a significant pay rise for thousands of store employees across the United Kingdom, with new wage rates set to take effect from 1 April 2026.

Under the new structure, hourly pay for customer assistants will increase to £14.74 in London and £13.41 across the UK, representing a 6.4% rise for frontline retail staff. The increase comes at a time when major supermarket chains are competing more aggressively for workers while responding to rising living costs.

The retailer said the decision forms part of a £70 million investment in staff wages this year, contributing to a broader £350 million commitment to improving employee pay over the past four years.

For many store employees, the revised pay structure means a noticeable increase in earnings, particularly in London where higher living costs have intensified competition for retail workers.

M&S 2026 Pay Rate Increases

The new wage levels represent a 6.4% increase, which is significantly higher than the UK CPI inflation rate of around 3% recorded in January 2026.

For employees working full-time schedules, this increase can have a meaningful impact on annual earnings. A typical customer assistant could see income rise by approximately:

• £132 per month
• £1,587 per year

From a business standpoint, the company confirmed that the wage adjustment represents a £70 million investment in employee pay for 2026.

This is part of a broader strategy. Over the past four years, M&S has allocated around £350 million toward improving employee wages, reflecting the company’s effort to remain competitive within the retail labour market.

How Does the M&S Pay Rise Compare With Other UK Supermarkets?

To understand the significance of the M&S pay rise, it helps to place it within the wider supermarket industry.

Retail employers across the UK have been increasing wages steadily as they compete to recruit and retain staff, particularly in high-cost cities such as London.

London Supermarket Pay Comparison (2026)

This comparison highlights several key trends.

First, Aldi remains the highest-paying supermarket employer in London, with hourly wages approaching £15.

Second, Lidl matches the official London Real Living Wage benchmark of £14.80.

Third, Sainsbury’s has also increased pay significantly, offering £14.54 per hour in London.

With its new rate of £14.74, M&S sits close to the top of the supermarket pay scale. Although slightly below the very highest rates, it remains among the better-paying retailers in the sector.

In London particularly, where housing and transport costs are among the highest in the UK, wage competition between supermarkets has become an important factor influencing recruitment and staff retention.

Why Did M&S Set Its Pay Rate Slightly Below the Real Living Wage?

One of the key discussions surrounding the M&S pay rise in 2026 is the company’s position relative to the London Real Living Wage.

The Real Living Wage is an independently calculated benchmark designed to reflect the actual cost of living. In London, that benchmark currently stands at:

£14.80 per hour

The new M&S London pay rate of £14.74 falls just below this level.

Confirmed facts:

• M&S increased store wages by 6.4%
• The London hourly rate will rise to £14.74
• The Real Living Wage benchmark remains £14.80

This small difference has generated debate among labour groups, investors, and industry observers.

Executive perspective from M&S leadership

Chief Executive Stuart Machin has publicly defended the decision, describing the pay increase as part of a broader investment in the workforce.

Machin stated that the company views the spending as a necessary investment in its people.

He also emphasised the importance of store employees within the organisation, noting that frontline staff remain the “heart of our business.”

From the company’s perspective, the 6.4% pay rise represents an inflation-beating increase, since it is more than double the UK inflation rate recorded earlier in the year.

Machin linked the investment to the company’s ongoing transformation strategy, explaining that strengthening the workforce is essential as Marks & Spencer continues reshaping the business for future growth.

External criticism and debate

Despite the increase, some organisations have expressed concerns about the decision not to match the Real Living Wage benchmark.

Investment advocacy organisation ShareAction raised questions about the change.

Critics believe that following the Real Living Wage can:

• Support employee wellbeing
• Reduce staff turnover
• Help businesses attract talent

However, others note that retail employers often balance wage commitments with broader compensation packages and operational costs.

What Is Included in the M&S “Total Reward” Package?

Beyond hourly pay, M&S highlights a broader compensation structure known internally as the “Total Reward” package.

The company argues that when employee benefits are taken into account, the overall value of compensation may reach around £16.33 per hour.

Staff discount

Employees receive a 20% discount across M&S products, including:

• Food items
• Clothing and fashion ranges
• Homeware products

Unlike some retail discount schemes, this benefit is not capped, allowing staff to use it freely throughout the year.

Pension contributions

The company also provides pension contributions of up to 12%, which is relatively strong within the retail sector. Over time, employer pension contributions can significantly increase the overall value of a compensation package.

Health and wellbeing support

Employee wellbeing has become a growing focus for large employers. As part of its benefits package, M&S provides:

• 24/7 virtual GP access
• Mental health support
• Employee assistance programmes

These services are designed to support staff both inside and outside the workplace.

Example: What the pay rise means for a London store employee

Consider a customer assistant working at a busy London store such as the Stratford Westfield branch.

Before April 2026:

• Hourly pay: £13.85

After the pay increase:

• Hourly pay: £14.74

Over a full-time working schedule, this increase could add roughly £132 to monthly income, helping employees manage the higher living costs associated with working in London.

What Does the M&S Pay Rise Mean for the Future of Retail Wages?

The latest wage increase at M&S reflects a broader shift taking place across the UK retail industry.

Several factors are influencing how supermarkets approach employee pay.

First, labour competition is intensifying. Retail employers increasingly compete for experienced staff, especially in urban areas where job opportunities are abundant.

Second, living costs remain a key concern for workers. As housing, transport, and food prices rise, employees often evaluate jobs based on overall financial security.

Third, retail companies are expanding benefits alongside wages. Many employers now promote broader compensation packages that include health support, discounts, and pensions.

For M&S, the 2026 pay rise represents another step in a longer-term effort to strengthen employee retention while adapting to a rapidly changing retail environment.

How Much More Will M&S Employees Earn After the 2026 Pay Rise?

For many frontline workers, the M&S pay rise in 2026 will translate into a noticeable increase in take-home earnings. While the exact amount depends on working hours and location, the revised pay structure will raise monthly and yearly income for thousands of store employees.

For example, a full-time customer assistant working in London previously earning £13.85 per hour will see their hourly rate increase to £14.74 from April 2026.

Based on a typical full-time retail schedule, this could mean:

• Around £132 extra per month
• Approximately £1,587 more per year

For employees outside London, the increase from £12.60 to £13.41 per hour also represents a meaningful improvement in earnings.

Although the pay rise does not fully match the London Real Living Wage benchmark of £14.80, it still places Marks & Spencer among the higher-paying employers in the UK supermarket sector.

For many workers, the increase may help offset rising living expenses such as transport, rent, and food costs, which have placed pressure on household budgets in recent years.

The change also highlights how major retailers are adjusting wage policies to remain competitive in attracting and retaining experienced staff.

Conclusion

The M&S pay rise in 2026 marks one of the most notable wage increases announced by a major UK retailer this year. With hourly wages rising to £14.74 in London and £13.41 nationally, thousands of employees will benefit from higher earnings.

The increase is well above inflation and forms part of a £70 million investment in staff wages for the current year. Over a longer period, the company has allocated around £350 million toward improving employee pay.

At the same time, the decision to set the London rate slightly below the Real Living Wage benchmark has sparked debate among labour advocates and governance groups.

Ultimately, the pay rise highlights a key challenge facing the retail sector: balancing competitive wages, operational costs, and broader employee benefits in an increasingly competitive labour market.

FAQs

When does the M&S pay rise take effect?

The new wage rates will apply from 1 April 2026 for eligible store employees across the UK.

What is the new London hourly pay at M&S?

Store employees working in London will earn £14.74 per hour after the pay rise.

How much has M&S invested in staff pay recently?

The company has invested around £350 million in employee wages over the last four years, including £70 million allocated for 2026.

Is the M&S pay rise higher than inflation?

Yes. The 6.4% increase is more than double the January 2026 UK inflation rate of around 3%.

Why is the M&S London pay slightly below the Real Living Wage?

The company has chosen to focus on a broader benefits package rather than strictly matching the voluntary Real Living Wage benchmark.

What benefits do M&S employees receive besides wages?

Benefits include 20% staff discount, pension contributions up to 12%, virtual GP access, and mental health support services.