Asda gives thousands of workers a pay rise as it cuts prices

Asda has announced it will invest more than £73 million towards its customer and staff throughout the next year.

It comes as the cost of living crisis continues to plague millions of households across the UK with the supermarket groups stating it will reduce the price of over 100 of its products. Some of the products that will be reduced include tea bags, rice and cheddar cheese.

The investment will also include an hourly rate increase for shop workers to £10.10 from July. The company also announced this week that it will scrap its Smart Price range and replace it with new 'Just Essentials' which it claims with cover a broader range of products, Hull Live reports.

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The move makes Asda the latest supermarket to push down the prices of some essential items amid increased financial pressure for many households in the UK. Earlier on Monday, rical Morrisons also announced it would cut the price of around 500 items including eggs, beef and nappies.

According to research from Asda, nine in 10 customers are concerned about inflationary pressures to their budgets while the average household income has also taking a hit. It added that its products covered by the "dropped and locked" price pledge will experience an average price reduction of 12 percent, including a 25 per cent drop in the price of a bag of Asda easy cook rice to 75p.

Retailers across the country reported a 3.3 per cent increase in food inflation last month which is expected to only increase. Asda noted it will increase its pay rate to £10,10 per hour from July which is 60p more than the National Living Wage.

Mohsin Issa, co-owner of Asda, said: “We know that household budgets are