Lidl is set to increase the pay rate for its UK store and warehouse staff for the third time in 12 months as it invests a further £8m into supporting staff through the cost-of-living crisis.

The pay rise is set to come into effect in September and will see rates for those outside the M25 jump to £11.40 from £11, rising to £12.30 based on length of service.

Those inside the M25 will see their salaries rise to £12.85 per hour, increasing to £13.15 depending on length of service.

The German grocer said its third pay rise in the past year brings the total investment in staff pay for the year to £60m.

Lidl GB chief executive Ryan McDonnell said: “Our people are at the core of everything we do, and this investment recognises the hard work and contribution they make in serving communities across the country every day.”