Tesco hands store staff 7% pay rise

Supermarket's third pay increase in a year puts it slightly ahead of Aldi and Sainsbury's

Tesco is to increase hourly pay for shopfloor staff by 7% to a minimum of 11.02 an hour, its third pay rise in a year amid heavy competition for workers.

The increase, which comes in from April, puts the UK's biggest supermarket slightly ahead of the current best-paying grocers - Aldi and Sainsbury's - which pay 11 an hour, and on track to beat rival Asda, which will raise pay to at least 11 an hour from the same month.