Brits’ financial confidence boost

Households’ hopes for their personal finances over the next 12 months improved in February, reaching close to levels seen before the coronavirus lockdowns started, according to an index. The findings could signal a confidence among some households to spend as coronavirus restrictions ease, helping economic recovery.

The consumer confidence index compiled by market research company GfK (Growth from Knowledge), recorded an overall score of minus 23.

While this indicates that attitudes remain negative, it is a five point improvement on a reading of minus 28 in January.

The survey takes into account how consumers feel about their own financial situation as well as the wider economy.

The part of the index measuring how people feel about their financial situation over the next 12 months moved from a score of two in January to four in February – just two points lower than it was in February 2020, the month before the UK coronavirus lockdowns started.

SAINSBURY’S will increase salaries for staff at its supermarkets and Argos stores and pay a bonus to frontline workers – the third since the pandemic started, the retailer said.

Sainsbury’s staff currently receive £9.30 an hour and Argos workers get £9 an hour, but this will rise to £9.50 from March.

Staff at central London stores will see their hourly pay rise to £10.10.

A 3% annual bonus will also be paid out to staff, meaning a full-time worker will take home an extra £530.

The announcement comes after Lidl announced a £200 bonus for 23,000 UK workers, Aldi revealed wages will rise to a minimum of £9.55 an hour and Morrisons said workers at its stores will take home at least £10 an hour from April.

Supermarkets have been one of the biggest winners during the global pandemic, remaining open throughout and enjoying strong sales as non-essential retailers, pubs, cafes and restaurants remain shut.

The latest pay rise from Sainsbury’s means workers at the retailer have seen salaries increase 24% over the last five years.

The bonus is the third since the pandemic and means the company has handed out more than £100m in extra cash to workers.

A 10% pay boost was made between March and April last year and a second boost of 10% for four weeks in November.

In March 2020, Sainsbury’s also increased pay for store staff to £9.30 per hour, while pay for workers in central London – Zones 1 and 2 on the London Underground map – received £9.90 per hour.