Money blog: Morrisons admits it 'went too far' with self-checkouts - as it changes strategy (2024)

Many retailers boosted wages after living wage/minimum wage changes in spring.

Figures show German discount brands Aldi and Lidl top the list of major UK supermarkets when it comes to staff hourly pay - after Lidl introduced its third pay increase of the year in May to match its closest rival.

Meanwhile, Morrisons is at the bottom of the pack for staff pay outside London, with hourly wages starting at the National Living Wage (£11.44).

How do other companies compare when it comes to pay and benefits? We've taken a look...

Aldi

Pay: £12.40 an hour outside London and £13.65 inside the M25

Aldi announced in March it was bringing in its second pay rise of the year as part of its aim to be the best-paying UK supermarket.

From 1 June, hourly pay rose from £12 an hour to £12.40 outside the M25 and £13.55 to £13.65 in London.

Aldi is one of the only supermarkets to give staff paid breaks. It also offers perks such as discounted gym membership and cinema tickets, and financial planning tools. However, there are no cheaper meals, staff discounts or bonus schemes.

Asda

Pay:£12.04 an hour outside London and £13.21 inside the M25

As of 1 July, hourly wages for Asda supermarket staff rose to £12.04 per hour from £11.11, with rates for London staff also going up to £13.21.

As part of the July changes, Asda brought in the option for free later-life care or mortgage advice. The company also offers a pension and a free remote GP service.

Co-op

Pay:£12 an hour outside London and £13.15 inside the M25

Co-op boosted its minimum hourly wage for customer team members from £10.90 to £12 nationally as the national living wage rose to £11.44 in April.

For staff inside the M25, rates rose from £12.25 to £13.15.

The perks are better than some. Workers can get 30% off Co-op branded products in its food stores as well as 10% off other brands. Other benefits include a cycle to work scheme, childcare vouchers and discounts on its other services.

Iceland

Pay:£11.50 an hour outside London and £12.65 inside the M25

Iceland says it pays £11.50 for staff aged 21 and over - 6p above the minimum wage. Employees in London receive £12.65 per hour.

Staff are also offered a 15% in-store discount, which was raised from 10% in 2022 to help with the cost of living.

The firm says it offers other perks such as a healthcare scheme and Christmas vouchers.

Lidl

Pay:£12.40 an hour outside London and £13.65 inside the M25

From June, Lidl matched its rival Aldi by raising its hourly wage to £12.40 for workers outside the M25 and £13.55 for those inside.

Lidl also offers its staff a 10% discount card from the first working day, as well as other perks such as dental insurance and fertility leave.

M&S:

Pay:£12 an hour outside London and £13.15 inside the M25

Marks and Spencer's hourly rate for store assistants was hiked from £10.90 to £12 for staff outside London and from £12.05 to £13.15 for London workers from April.

The grocer also offers a 20% staff discount after the probation period as well as discretionary bonus schemes and a free virtual GP service.

Morrisons

Pay:£11.44 an hour outside London and £12.29 inside the M25

Along with many other retailers, Morrisons increased the hourly wage for staff outside the M25 in line with the national living wage of £11.44 in April.

Employees in London receive an 85p supplement.

While it's not the most competitive for hourly pay, Morrisons offers perks including staff discounted meals, a 15% in-store discount and life assurance scheme.

Sainsbury’s

Pay:£12 an hour outside London and £13.15 inside the M25

Sainsbury's hourly rate for workers outside London rose to £12 from March, and £13.15 for staff inside the M25.

The company also offers a 10% discount card for staff to use at Sainsbury's, Argos and Habitat, as well as a range of benefits including season ticket loans and long service rewards.

Tesco

Pay:£12.02 an hour outside London and £13.15 inside the M25

Since April, Tesco staff have been paid £12.02 an hour nationally - up from £11.02 - while London workers get £13.15 an hour.

The supermarket giant also provides a 10% in-store discount, discounted glasses, health checks and insurance, and free 24/7 access to a virtual GP.

Staff get their pay boosted by 10% on a Sunday if they joined the company before 24 July 2022.

Waitrose

Pay:£11.55 an hour outside London and £12.89 inside the M25

Waitrose store staff receive £11.55 an hour nationally, while workers inside the M25 get at least £12.89.

Staff can also get access to up to 25% off at Waitrose's partner retailer John Lewis as well as 20% in Waitrose shops.

JLP (the John Lewis Partnership) gives staff a bonus as an annual share-out of profit determined by the firm's performance. In 2021-22 the bonus was 3% of pay; however, it has not paid the bonus for the past two years.

Dozens of Ted Baker stores will shut for the last time this week amid growing doubts over a future licensing partnership with the retail tycoon Mike Ashley.

Sky News understands that talks between Mr Ashley's Frasers Group and Authentic, Ted Baker's owner, have stalled three months after it appeared that an agreement was imminent.

Administrators are overseeing the closure of its remaining 31 UK shops.

One store source said they had been told that this Tuesday would be the final day of trading.

Read more...

The housing market experienced a surge in activity following the Bank of England's recent decision to cut interest rates, according to a leading property website.

Estate agents reported a 19% jump in enquiries about properties for sale after 1 August, when compared with the same period last year, research by Rightmove found.

It came after the Bank cut rates for thefirst time in more than four yearsfrom 5.25% to 5%.

Read more...

The lead negotiator for major train union ASLEF has denied the union sees the new government as a "soft touch" after announcing fresh strikes two days after train drivers were offered a pay deal.

Drivers working for London North Eastern Railway will walk out on weekends from the end of August in a dispute over working agreements.

Lead negotiator Nigel Roebuck said it is a separate issue from the long-running row over pay, which looks likely to be resolved after a much-improved new offer from the government.

Read more...

Over 40 bottles of fake vodka have been seized from a shop in Scotland after a customer reported "smelling nail varnish".

The 35cl bottles, fraudulently labelled as the popular brand Glen's, were recovered from the shop in Coatbridge, North Lanarkshire.

Officers from the council's environmental health officers and Food Standard Scotland (FSS) sent them for analysis after a customer raised the alarm by saying they smelt nail varnish from one of the bottles.

The bottles were found to be counterfeit.

Britons don't have long left to claim cost of living assistance from the Household Support Fund.

Introduced in October 2021, the scheme provides local councils with funding which can be used to support those struggling most with the rising cost of living.

The vast majority of councils operate their version of the Household Support Fund on a "first come, first serve" basis and will officially end the schemes once the funding has run out in September.

The help provided by councils has ranged from free cash payments, council tax discounts, and vouchers for supermarkets and energy providers.

Who is eligible?

Local authorities were instructed to target the funding at "vulnerable households in most need of support to help with significantly rising living costs" when it was first rolled out.

In particular, councils were guided to make priority considerations for those who:

• Are eligible but not claiming qualifying benefits;
• Became eligible for benefits after the relevant qualifying dates;
• Are receiving housing benefit only;
• Are normally eligible for benefits but who had a nil award in the qualifying period.

If you do not meet these criteria, you can still contact your local council, with many having broadened their criteria for eligibility.

By Daniel Binns, business reporter

Weapons maker BAE Systems is the big loser on the FTSE 100 this morning, with its shares down almost 3% in early trading.

It comes following reports over the weekend that the German government is planning to scale back aid to Ukraine in its war with Russia – in what would be a blow to the arms industry.

German media said ministers are set to slash support for Kyiv to 6% of current levels by 2027 in their upcoming budget.

However, the government there has rejected the reports and has denied it is "stopping support" to Ukraine.

Whatever the truth, the reports appear to have spooked traders.

Other companies involved in the defence sector, including Rolls-Royce Plc and Chemring Group, are also down more than 2% and 1% respectively on Monday.

It comes amid a slight slump in early trading, with the FTSE 100 down just over 0.2%, although the FTSE 250 is up 0.07%.

Gainers this morning include housebuilders Barratt Developments, up 1.5%, and Redrow Plc, which is up almost 3%.

Barratt said today it intends to push ahead with a planned £2.5bn merger with its rival despite concerns from the competition regulator.

Meanwhile, the price of oil is down amid concerns of weaker demand in China.

Ongoing ceasefire talks in the Israel-Hamas conflict have also raised hopes of cooling tensions in the Middle East, which would help ease supply risks and worries.

A barrel of the benchmark Brent Crude is currently priced at just over $79 (£61).

On the currency markets, this morning £1 buys $1.29 US or €1.17.

Winter energy bills are projected to rise by 9%, according to a closely watched forecast.

The price cap from October to December will go up to £1,714 a year for the average user, Cornwall Insight says.

It would be a £146 rise from the current cap, which is controlled by energy regulator Ofgem and aims to prevent households on variable tariffs being ripped off.

The cap doesn't represent a maximum bill. Instead it creates an average bill by limiting how much you pay per unit of gas and electricity, as well as setting a maximum daily standing charge (which all households must pay to stay connected to the grid).

Ofgem will announce the October cap this Friday.

"This is not the news households want to hear when moving into the colder months," said the principal consultant at Cornwall, Dr Craig Lowrey.

"Following two consecutive falls in the cap, I'm sure many hoped we were on a steady path back to pre-crisis prices.

"However, the lingering impact of the energy crisis has left us with a market that's still highly volatile and quick to react to any bad news on the supply front.

"Despite this, while we don't expect a return to the extreme prices of recent years, it's unlikely that bills will return to what was once considered normal. Without significant intervention, this may well be the new normal."

Cornwall Insight warned that the highly volatile energy market and unexpected global events, such as the recent escalating tensions in the Russia-Ukraine war, could see prices rise further at the start of the new year.

To avoid this vulnerability, Cornwall Insight said domestic renewable energy production should increase and Britain should wean itself off energy imports.

Kellogg's appears to have shrunk its packets of Corn Flakes.

Two of its four different pack sizes have reduced in weight by 50g, according to The Sun.

What used to be 720g boxes are now 670g, while 500g boxes have become 450g.

The newspaper says the 670g boxes are being sold for £3.20 in Tesco - the same price customers were paying for the larger box back in May.

The 450g boxes are being sold for £2.19, only slightly less than the previous price of £2.25.

Other supermarkets have similar pricing, although in Morrisons the price has gone down in proportion to the size reduction.

The 250g and 1kg pack sizes remain unchanged.

Kellogg's has said it is up to shops to choose what they charge, but Tesco said the manufacturer should comment on pricing.

Sky News has contacted Kellogg's for comment.

A spokesperson is quoted by The Sun: "Kellogg's Corn Flakes are available in four different box sizes to suit different shopper preferences and needs.

"As the cost of ingredients and production processes increase, it costs us more to make our products than it used to.

"This can impact the recommended retail price. It's the grocer's absolute discretion and decision what price to charge shoppers."

WHSmith has launched a café brand as it seeks to expand into the food-to-go market.

The first café is in Princess Anne Hospital in Southampton and offers teas and coffees, hot breakfasts and pastries

Its branding is the same as the Smith Family Kitchen food-to-go range launched three months ago.

WHSmith UK travel managing director Andrew Harrison said: "Whether it's in a hospital or on their journeys, customers tell us that quality food and drink options are what they prioritise most in the different locations we serve.

"That's why we have been doubling down on our food ranges and formats to ensure our customers don't need to compromise on quality or value, as demonstrated today with the launch of Smith's Kitchen."

By Jimmy Rice, Money blog editor

Every Monday the Money team answers your Money Problems or consumer disputes. Find out how to submit yours at the bottom of this post. Today's question is...

I'm 62 and have 10 years of gaps in my national insurance record as I worked for my parents' import business without a fixed wage during most of my twenties and thirties, and had periods of unemployment in my fifties. What are the benefits of topping up before I retire in a few years and can I really get £6,000 added to my pension for every £900 I put in?
Tony, Palmers Green

This is a question many people approaching retirement will be asking themselves, Tony.

First, it's worth us outlining why your national insurance record matters and who can top up.

If you reached pension age after 6 April 2016 you need 10 years of NI contributions to get a state pension - and 35 years to get the full £221.20 a week. Before that 2016 date, it's 30 years.

People may have gaps in their record for numerous reasons including: being unemployed, on a low income, self-employed, having worked abroad, or having taken a break from work to raise a family.

Ordinarily, you can pay voluntary contributions for the past six years - but currently there's an extended period meaning a man born after 5 April 1951 or a woman born after 5 April 1953 can pay voluntary contributions to make up for gaps between April 2006 and April 2016.

The deadline for this is 5 April 2025.

How much could topping up earn you?

It would cost £907.40 to cover all NI contributions from the 2023-24 tax year - each year is different but this is a good guide. Going back to your question, if you went on to enjoy 20 years of retirement, you would get back £6,000. It would take just three years to get your £907.40 back.

Who might want to think twice?

Just to stress, as always, that this post is not intended as financial advice. Instead, we're outlining things you should think about.

The first thing anyone should consider is if they'll fill gaps naturally through working - in which case there'd be no point topping up. Given your age, Tony, it could be an option for you - but check your state pension forecasthere.

There are lots of other things to factor in and you should seek independent financial advice.

Wealth management firmCharles Stanleysays a key consideration is whether a higher pension would either:

• Drag you into paying tax when you retire;
• Mean you no longer qualify for certain benefits.

"You might not benefit from the full amount of extra money as some will be taken in income tax," they say.

"In addition, boosting state pension income can affect entitlements to means-tested benefits. Notably, if you claim pension credit, which tops up the income of very low earners over state pension age, any increase in the state pension would normally reduce an award. This often means that you would be no better off paying voluntary contributions."

Another consideration - and this isn't something most people want to contemplate - is that if you don't think you'll live long enough into retirement (you might be in ill-health or have a terminal illness) to benefit from topping up, then it's probably not worth it.

People should also look into whether they could transfer contributions from their spouse or civil partner.

One more way to top up

Which? advises: "Ensure that you are getting any NI credits you are entitled to before contemplating paying voluntary NI contributions for a particular year.

"These are free and will apply, say, if you are caring for a child in the family as a parent or grandparent, claiming statutory sick pay or looking after a sick/disabled person."

What next?

If you're below state pension age, you can contact the Future Pension Centre to see if you'll benefit from topping up - they're on 0800 731 0175. If you already claim the state pension, call the Pension Service on 0800 731 0469.

Again, before taking any action you should seek independent financial advice.

If you do decide to top up, you'll need a Government Gateway account.

On there, you can see gaps, the cost of filling them and how much you could benefit - you can then pay online.

This feature is not intended as financial advice - the aim is to give an overview of the things you should think about. Submit your dilemma or consumer dispute via:

• The form above - you need to leave a phone number or email address so we can contact you for further details;
• Email news@skynews.com with the subject line "Money blog";
• WhatsApp us here.