Exclusive: John Lewis to make record £116m investment in staff pay

The partnership, which owns grocer Waitrose as well as the eponymous department stores, is expected to confirm the record pay budget when it posts results next week. 

The increase − effective from next month − will result in minimum rates of pay going up by approximately 10%, taking the minimum to £11.55 per hour nationwide other than in London where it will be £12.89.

John Lewis’ pay initiative is the latest big wage increase awarded to frontline staff by top retailers this week. Tesco unveiled its “biggest ever single investment” of £300m in pay, while electricals group Currys said it would pump an additional £13m into pay.

The increases come as people continue to feel the pressure of the cost-of-living crisis and as retailers seek to attract and retain the best staff.

John Lewis will post annual results on March 14, after what has been a difficult year.

The business has endured tough trading and is in the midst of a turnaround programme spearheaded by chair Dame Sharon White who will not seek a second term in the role after a sometimes controversial tenure.

It is thought that over the next five years, the group is likely to cut as many as 11,000 roles and it has slashed redundancy pay.