Tesco’s Pay Rise
A Step Forward - But What Does It Really Mean?
Recently, Tesco announced a new pay deal for store and online fulfilment colleagues, increasing hourly pay to £13.28 from 29th March, with London-based staff earning up to £14.55 per hour including location allowance.
On the surface, this looks like a strong, positive move - and in many ways, it is. But as with most things in health, performance and life, context matters.
At Moco Coaching, we are always interested in the bigger picture. Because whether it’s nutrition, training or workplace wellbeing, quick headlines rarely tell the full story.
Let’s break this down.
The Positive: Progress That Matters
A 5.1% pay increase, above the current rate of inflation, is a meaningful step - particularly in a time where the cost of living is still a real pressure for many.
Over the past five years, Tesco reports that hourly-paid staff have seen a 43% increase in wages, alongside improvements in benefits such as:
access to a virtual GP
enhanced maternity (26 weeks fully paid)
improved paternity leave
From a wellbeing perspective, this matters.
Financial stress is one of the biggest contributors to:
poor sleep
increased anxiety
reduced capacity to focus on health habits
So when income improves, even modestly, it can have a real knock-on effect on someone’s ability to look after themselves - physically and mentally.
And that’s something we always encourage at Moco: building an environment where healthy choices are actually realistic.
The Bigger Picture: Profits vs Pay
Here’s where things get more nuanced.
Tesco isn’t a small business trying to stay afloat. It’s the UK’s largest supermarket, generating enormous revenue and profit each year.
Tesco reported around £3.1 billion in operating profit for 2025, a 10.6% increase year-on-year
Total group sales reached over £63 billion
It is forecasting £2.9–£3.1 billion profit again for 2025/26
Put simply: this is a highly profitable business operating at massive scale.
So the question becomes less about whether the pay rise is good - and more about how it compares to the wider financial picture.
A 5.1% wage increase is meaningful for an individual.
But in the context of multi-billion-pound profits, it also raises fair questions around:
how value is distributed
what “investment in staff” really looks like
and how much reaches frontline workers vs shareholders
This isn’t about criticism - it’s about perspective.
How This Feeds Down to Teams
One of the most important questions is: what does this actually feel like day-to-day for employees?
Because pay is just one piece of the puzzle.
From a coaching perspective, we look at overall wellbeing through a wider lens:
workload and shift patterns
job security
management support
work-life balance
access to recovery (sleep, downtime, routine)
A pay rise can ease financial pressure, but if:
shifts remain unpredictable
workloads are high
stress levels are constant
then the overall impact on wellbeing can still be limited.
This is something we see often - people aren’t just struggling because of one factor. It’s usually the combination.
The Moco View: Environment Drives Behaviour
At Moco Coaching, one of our core beliefs is this:
Your environment shapes your habits.
That includes:
your schedule
your stress levels
your financial situation
your workplace culture
A pay increase like this can improve someone’s environment - giving them a bit more breathing room.
That might mean:
being able to afford better food choices
having less financial anxiety
feeling more valued at work
And when people feel more stable, they’re far more likely to:
move more
sleep better
stay consistent with routines
But it’s not a complete solution on its own.
Why This Matters Beyond Tesco
This isn’t just about Tesco.
It reflects a wider shift in how companies are thinking about:
employee wellbeing
retention
long-term sustainability
There’s growing recognition that people perform better - and live healthier lives - when they are supported properly.
And that aligns directly with what we promote at MOco:
long-term, realistic, sustainable change.
Not extremes. Not quick fixes. Not surface-level solutions.
Tesco’s pay rise is a positive step. It shows progress, investment and recognition of the role frontline staff play.
But it also highlights a bigger truth:
Wellbeing isn’t created by one change - it’s built through a combination of factors.
Better pay helps.
Better support helps.
Better environments help.
At MOco Coaching, that’s exactly what we focus on - helping people build a lifestyle that actually works for them, in the real world.
Because whether it’s your job, your training, or your nutrition, the goal isn’t short-term improvement.
It’s something you can sustain.