Sainsbury's has said it will raise hourly pay though it is cautious about recruiting new staff this year due to rising costs. The supermarket chain said wages would rise 5% to £12.60 but it will be introduced in two phases "to help manage a particularly tough cost inflation environment".

Paddy Lillis, General Secretary of Usdaw, expressed approval of the pay increase for Sainsbury's staff, saying: "Usdaw has a longstanding and valued relationship with Sainsbury's and we welcome the staff pay increase in line with new real living wage rates.

Sainsbury’s told shareholders it is on track to increase its profits for the year, in line with previous targets.

Sainsbury's has announced it will raise hourly pay in response to "particularly tough cost inflation" after retailers warned prices are likely to rise later this year. The supermarket chain said it would increase wages by 5% from £12 an hour to £12.

Sainsbury's has announced a five per cent wage increase for thousands of staff following a successful Christmas trading period. The pay rise has been described as "inflation-busting" and aimed to support workers through a "particularly tough cost inflation environment".