UK retail giants are under pressure to pay workers a ‘real living wage’ as major investors urge companies to adopt the higher rate, currently set at £13.85 an hour in London and £12.60 elsewhere.
UK Retail Giants Under Pressure to Pay Workers ‘Real Living Wage’
The real living wage, voluntarily paid by over 15,000 UK businesses, stands at £13.85 an hour in London and £12.60 in the rest of the country.
The real living wage is a minimum hourly rate that allows workers to meet their basic needs and participate fully in society.
It varies by location, taking into account the cost of living, taxes, and other factors.
In the UK, for example, the real living wage is currently £10.85 per hour, compared to the national minimum wage of £8.91.
This difference highlights the need for a higher wage to ensure workers can afford basic necessities like housing, food, and transportation.
The Growing Concern Over Low Pay in Retail
A significant number of UK retail workers are not being paid the rate tracked by the Living Wage Foundation, which accredits employers. According to recent data, almost a quarter of UK retail workers – 818,000 people – are struggling to make ends meet due to low pay.
According to a report by the UK's Office for National Statistics, there are over 3.2 million people employed in the retail sector in the UK.
These workers face various challenges, including long hours, low pay, and high stress levels.
A survey by the union Unite found that 62% of retail workers reported feeling stressed at work, while 45% said they had to work extra hours without pay.
Additionally, many retail workers are on zero-hours contracts, which can make it difficult for them to plan their finances.
Major Investors Back ShareAction Campaign
Major investors including Axa and Scottish Widows have joined forces with campaign group ShareAction to push for retailers such as Next, Marks & Spencer, and JD Sports to increase pay for their thousands of workers. The effort is backed by over 100 individuals and eight institutional investors managing over £1tn in assets.
What is the Real Living Wage?
The real living wage is designed to ensure workers can cover necessary household costs. It is currently set at £13.85 an hour in London and £12.60 in the rest of the UK, while the statutory minimum wage is scheduled to increase by 6.7% to £12.21 from next month.
Companies Under Scrutiny

Companies such as Next, JD Sports, and Marks & Spencer are being called upon to pay a ‘real living wage’ to their workers. The efforts come amid evidence that many retailers are failing to support their workers with fair pay, leaving hundreds of thousands of people in the sector struggling to make ends meet.
Impact on the Economy
Business models that put pressure on workers and their families ultimately harm the vitality and growth of the UK economy, according to ShareAction. Companies that fail to provide a living wage may struggle to attract and retain skilled staff, leading to long-term economic instability.
Next Steps
Seven institutional investors are co-filing a resolution at Next’s annual shareholder meeting on 15 May, calling on the company to prepare a report on how many of its workers are paid below the real living wage. Similar resolutions are being put forward at JD Sports’ and M&S’s annual meetings in July.
Current Pay Rates
JD Sports currently pays all staff the legal minimum for those aged 21 and over with nothing extra, while Next pays only staff who are over 21 that minimum, with some extra in London. Marks & Spencer pays the real living wage to employees but does not guarantee it for third-party contracted staff.
Response from Retailers
Retailers have responded to the pressure by stating their commitment to fair pay and benefits. However, more must be done to ensure that all workers are paid a living wage, regardless of age or employment status.
A Call to Action
The push for retailers to pay a ‘real living wage’ is a call to action for companies to prioritize the well-being of their employees. It highlights the need for meaningful change and sector-wide progress to address the issue of low pay in the retail industry.
The UK retail industry has undergone significant changes over the years.
In 2020, online sales accounted for 19.1% of total retail sales, up from 12.7% in 2015.
The rise of e-commerce has forced traditional retailers to adapt and invest in digital transformation.
According to a report by the Office for National Statistics (ONS), the UK's retail sector experienced a decline in sales value between 2018 and 2020.
However, some sectors such as food and non-food online stores saw growth.