Russ Mould, investment director at AJ Bell, said: “Marks & Spencer gave with one hand but took away with the other in an announcement to its staff today.
“An above inflation 6.4 per cent pay increase for store employees will obviously be welcome, but the company is no longer pledging to keep pace with the real living wage – a voluntary benchmark based on the inflation-adjusted cost of living.
“Keeping a workforce happy serves purposes beyond pure altruism given the impact on employee performance and the atmosphere in stores.
“Nevertheless, if inflation were to ramp up again, the ability and willingness of large employers to keep pace with pay increases could be tested.”
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