Lidl has made a major move in its bid to be the UK's highest paying supermarket by increasing pay for its workers in its British stores. It comes amid an ongoing battle between UK supermarkets to be the highest paying company and is happening following a recent increase in pay by rival Aldi.

From March 1, the discounter will increase hourly pay for store assistants outside London to £13.45, rising further to £14.00 depending on length of service. In London, entry-level pay will rise to £14.80 per hour, with experienced staff able to earn up to £15.35. The move marks Lidl's second wage increase in less than a year and comes immediately after rival Aldi unveiled its own pay boost, highlighting the intensifying competition between the two German chains to attract and retain staff.

Lidl said the new rates reaffirm its position as one of the best-paying supermarkets in Britain and reflect its ongoing commitment to rewarding frontline workers amid continued cost-of-living pressures.

The increases apply to thousands of Lidl employees across its UK network of more than 960 stores, ensuring all store assistants earn significantly above the National Living Wage, which is set to rise to £11.44 per hour in April.

The supermarket said the pay rise forms part of a broader investment in its workforce as it continues expanding its footprint across the UK, opening new stores and creating additional jobs.

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Aldi has also raised pay in recent months, with both chains repeatedly leapfrogging one another in a healthy contest over wages.

The rivalry has become a key part of their strategy to position themselves as employers of choice in the competitive retail sector.

Announcing an increase of their minimum wage to £13.50, Aldi UK and Ireland CEO Giles Hurley said: "Our colleagues are at the heart of everything we do.

"Their hard work and dedication is what allows us to offer customers the quality, value and service they expect from Aldi.

"That's why we're making such a significant investment in our promise to never be beaten on pay for our colleagues."

Aldi also claims to be the only supermarket to offer paid breaks to all its store colleagues - a benefit worth up to £1,470 a year to employees.