Costa Coffee introduces £13.12 rule in all 1,500 stores from April | UK | News
Coffee giant Costa Coffee is introducing a new £13.12 rule across all of its 1,500 UK cafes from April 1.
The Starbucks and Pret A Manger rival is handing all its 16,000 staff a pay rise, with baristas handed a 4.1% uplift in line with the national living wage minimum increase introduced this April. It means Costa’s standard wages will rise from £12.60 per hour to £13.12, as part of a £7m pay uplift package.
Costa’s ‘barista maestros’ who lead teams and coffee trainers will get a boost from £12.93 and £13.43 to £13.75, while Costa Coffee store managers will get a flat 3%. Baristas in London will get an extra £1 per hour, ranging between £14.12 to £14.75.
Chancellor Rachel Reeves championed Costa’s announcement. She said: “It’s fantastic to hear that Costa Coffee are recognising and supporting their hard-working staff with this pay increase.
“Hard work should be rewarded, which is why from April, our increase to the national living wage will benefit 2.4 million people, with full-time workers on the national living wage being £900 a year better off.”
Retail employment costs rose by £5 billion last year following increases to employer National Insurance Contributions and the National Living Wage in April.
The BRC estimated that the cost of employing a full-time entry-level worker therefore rose by 10%.
Firms are also set to face another increase in labour costs in April this year, as another rise in the National Living Wage, of 4.1%, comes into force.
Last year, the ONS revealed that the number of UK retail jobs fell by 74,000 to 2.76 million – the lowest level on record.
The new survey of retail finance bosses also found that almost half, 48%, are planning to “reduce head office headcount”, while 32% are looking to “reduce stores headcount”.
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Nick Orrin, UK&I managing director at Costa Coffee, said: “Our talented baristas and team members are the heart of Costa Coffee, with every drink shaped by their expertise, skill and passion. This latest pay uplift reflects our ongoing commitment to recognise, reward and invest in the people who deliver great coffee experiences and daily rituals for our customers across the UK.”
