In a clear indication of its turnaround momentum, M&S has announced it is to invest a record £94 million improving staff pay and family leave policies.

It’s the retailer’s “biggest ever investment in our retail pay” and M&S said it has set aside £89 million to raise UK retail pay levels in line with the government-set Real Living Wage. In addition, a further £5 million will go to create “significant improvements” to its UK maternity, paternity and adoption leave policies.

The basic pay rise for its 40,000-or-so UK Customer Assistants will take effect from 1 April, increasing from £10.90 to £12 per hour, representing a 10.1% increase on a year ago basis and a 26.3% increase since March 2022.

“For a full-time colleague, that’s an increase of around £180 a month compared to today’s current rate”, it noted.

For Customer Assistants working in London, the hourly rate will increase from £12.05 to £13.15, representing a 9.1% increase on last year. For UK Team Support Managers, the hourly rate will increase from £12.20 to £13.05, while for those in London, it will increase from £13.35 to £14.20.

Also coming into effect on 1 April, M&S said it will be become of the first UK retailer to introduce six weeks’ paternity leave at full pay, while also almost doubling its maternity and adoption leave to 26 weeks – also at full pay.

Chief executive Stuart Machin said: “Our vision is to be the most trusted retailer – and that starts with being the most trusted employer. That’s why today we’re making our biggest ever investment in our retail pay offer to recognise our colleagues for the vital role they play each day.

“It means that since March 2022, we’ve invested more than £146 million in our retail pay offer and increased our standard hourly rate by more than 26%.”

He added: “But creating a great place to work isn’t just about pay; it’s about the overall package and colleagues feeling valued and able to be their best. That’s why, in addition to our pay increase, I’m delighted to announce some significant improvements to our family leave policies to support colleagues through life’s big moments.”