Morrisons will be increasing hourly pay at its UK stores from late October as part of a three-stage uplift. In May, the supermarket chain announced that a proposed pay deal for store and manufacturing workers had been resoundingly approved by the USDAW union, which negotiates pay for large parts of the workforce.

It opened the door for implementing pay increases for all eligible hourly-paid staff in three phases. The pay boost began with hourly rates for all Customer Assistants rising to £12.81 (backdated to March 30), with all other established hourly rates for eligible roles increasing by 10p. From Monday, July 20, 2026, customer assistants at Morrisons stores will see pay increase from £12.81 to £13.00, with all other established hourly rates for the other roles rising by 19p.

Then, from Monday, October 26, 2026, the hourly rate will climb further, from £13.00 to £13.11, with pay for the other roles upped by 11p.

In the May announcement, Morrisons said that, in addition, all eligible hourly-paid colleagues would receive a one-off fixed payment of between £25 and £175 based on their contractual hours.

Morrisons’ Group People Director, Jodie Keating, said at the time: “We’re pleased that we can now implement the pay proposal and increase pay for our colleagues to reward them for the contribution they make to our business.

“I would like to thank all our colleagues for everything they continue to do for Morrisons.”

It comes as Morrisons’ supermarket rivals also upped workers’ pay this year in a bid to retain and attract staff, as UK households continue to wrestle with cost-of-living pressures.

From March 1, Lidl increased hourly pay for store assistants outside London to £13.45, a rate that rises to £14.00 depending on length of service.

In London, entry-level store workers had their pay upped to £14.80 per hour, while the hourly rate for experienced staff can rise up to £15.35.

The following month, Store Assistants working at Aldi’s UK branches also saw their pay increase (to £13.50 per hour nationally, with those working inside in the M25 getting £14.88).

These pay rates rise to £14.47 and £15.20 respectively based on length of service. Aldi said at the time that the change would benefit 28,000 hourly-paid store workers.

Other major retailers that increased hourly pay in 2026 include Sainsbury’s, Primark, and John Lewis.

A popular cafe and B&B has announced it has been forced to close for good after only a couple of years, as they “couldn’t keep up with rising costs“. Cafe Neuk, located within the grounds of Arduthie House, a six-bedroom bed and breakfast in the Aberdeenshire town of Stonehaven, confirmed on social media that they will be closing the shop permanently within weeks, and that the B&B part of the business will eventually close after being sold.

In the announcement, Caitlin and Craig Turrif, who took the tearooms in 2024 and the B&B the following year, blamed pressures faced across the hospitality sector and offered a touching tribute to their customers and community. “We are absolutely heartbroken to share that Cafe Neuk’s last day will be on February 22.

“This was the hardest decision to make as it really has been our happy place – and hopefully yours – since we opened the cafe in 2024 and the B&B in 2025.

“Sadly, with each passing month, the pressure of the hospitality industry and small businesses keeps getting heavier on every front.

“Hospitality UK have been advocating for changes such as a VAT scheme that is fairer on the hospitality industry… I sincerely hope that some changes are made so that other businesses can keep going.

“Sadly, We just couldn’t keep up with the rising costs while our footfall kept going down.”

Cafe Neuk said they are “truly so sorry” for the closure and “wish that we would be here serving you coffees until we were old and grey”,” Aberdeen Live reports.

“We couldn’t have asked for lovelier customers than you all, you have brought our cafe to life each day with your chatter and laughter,” they added.

“I have had more ‘pinch me’ moments than I can count. Every time everyone joins in to sing happy birthday as we bring out a candle on an afternoon tea stand (or mini burgers…or pancakes!) to hosting your friends and family for special occasions like baby showers, hen do’s and milestone birthdays.

“When new customers enjoy their first visit or when you welcome back those of you who don’t need a menu (you know who you are!)

“I could go on forever. Thank you for being part of the Cafe Neuk journey, from the bottom of our hearts.”

The post added that former Arduthie House owners Rod and Lesley would be running the B&B until the property is sold.

The Co-op has announced a major investment as customers are set to notice some price changes in its 2,300 UK stores over the next 12 months. The supermarket, which is the sixth-largest in the UK by number of stores, has pledged to make several moves to help customers through the current cost-of-living crisis. Its £1bn “Back Britain” plan comes after the Budget announcement, and will see prices slashed for both members and non-members across the country.

Prices will be slashed on more than 1,000 products in Co-op’s 2,300 stores nationwide over the next 12 months. Co-op has also pledged to British sourcing, community-led retailing, and skills development. The company says the move reinforces its “belief that responsible business must play its part in tackling the cost-of-living crisis”. A survey by Co-op revealed that 58% of participants list the cost-of-living crisis as one of their top three concerns. This figure is up from 51% in late 2024.

Shirine Khoury-Haq, Co-op Group CEO, said that its commitment to “facilitating over £1 billion of spend into the UK economy over the next year” sees its “biggest ever number of price reductions to help with the cost of living, continued investment in British farmers and suppliers, and a focus on keeping high streets vibrant and safe.”

The £1bn investment will have a focus on categories that support British farming, produce, protein and dairy. Co-op’s investment will “extend lower prices beyond just Co-op members”, in a bid to support “the 15 million weekly transactions that occur in Co-op shops and to help families manage weekly budgets”. 

Co-op also pledged to spend more than £700m a year with British farmers and agriculture suppliers, maintaining its 100% British fresh and frozen meat commitment across all own-brand products.

The supermarket said it will invest in another 100 stores over the next 12 months, including new openings and revamps to existing stores. Recently, Co-op announced that it was opening a record number of stores in the space of seven days as part of its growth plans. 

It has also pledged a £38m annual spend on crime prevention measures, including body cameras for workers and extra security staff. 

Additionally, Co-op has set a target of creating 7,000 matched apprenticeships by 2030 through its Levy Share service. It already spends £1 million a year on its 38 Co-op Academies. 

The price of coffee, tea, milk, eggs and chocolate in the UK has rocketed in the last year as one Conservative MP says the nation is “quite literally paying the price for a socialist government”.

Inflation rose to its highest since January 2024, reaching 3.8% in the year up to July, according to the Office for National Statistics (ONS), with the Bank of England predicting further rises in September.

Soaring air fares were the main driving force behind the increase, caused by hiked school holiday costs, jumping by 30.2% while food inflation climbed to 4.9% as essentials rocketed in price.

Former Deputy Chairman of the Conservative Party and businessman, Lord Michael Ashcroft shared figures published by the Daily Mail depicting price rises for beef and veal (24.3%), coffee (18%), cinema, theatre and concert trips (5.7%), electricity (8%) and chocolate (17.2%), amongst other increases.

Essentials such as eggs and tea shot up 4.9% each, while whole milk prices have risen by 11.3% in the past 12 months, according to the graphic featuring ONS figures.

Peter Bedford, Conservative Member of Parliament for Mid Leicestershire, reacted to the inflation numbers on X, formerly known as Twitter, posting “We are all, quite literally, paying the price for a socialist government.”

But, inflation for most sectors can be put down to a number of factors, such as the aforementioned air fare surge, which jumped a record 30% from June to July and by 15% compared with the same month in 2024.

Experts also cite a rise in hotel prices as being linked to the recent Oasis reunion tour, which stopped in Cardiff, Manchester, London and Edinburgh.

Stepping back, in the past five years leading up to July, the cost of food and non-alcoholic drinks grew by around 37%.

The living standard think-tank Resolution Foundation claims the UK is “increasingly looking like an inflation outlier” when compared to other G7 nations.

This coincides with data putting the UK as having the G7’s fastest-growing economy after increasing by 0.3% from April to June, with Chancellor Rachel Reeves stating the British economy is “beginning to turn a corner.”

Speaking on the inflation data, the Chancellor added that there was “more to do to ease the cost of living”, while the shadow chancellor, Mel Stride, claimed the data was “deeply worrying for families.”

Food price inflation has continued to climb for four consecutive months, to 4.9%, its highest since February 2024. Meanwhile, petrol and diesel prices also went up, making trips to supermarkets more expensive on two fronts.

High energy and ingredient costs mean food and drink manufacturers are being “squeezed on all sides”, according to the industry representative, Food and Drink Federation.

“We expect that high food and drink inflation will persist through the year, so any fresh costs for businesses in the autumn Budget will inevitably put yet more pressure on shoppers’ pockets,” claimed Jim Bligh, director of corporate affairs and packaging at the FDF.