Supermarket giant Tesco has announced it will hike hourly wages by 5.8 per cent from £9.55 to £10.10, as Brits face a cost of living crunch.

New hourly rates for store and warehouse staff will be effective from 24 July, the grocer revealed on Thursday afternoon.

The supermarket also confirmed workers in London would be paid £10.78 an hour, a premium of 68p.

Tesco revealed it would also be increasing the hourly rate for customer delivery drivers and click and collect delivery assistants to £11 from this summer.

After successful talks with USDAW to agree the new pay deal with increased access to extra hours, training and an extension to colleague Clubcard allowance,  the supermarket dubbed this the biggest single-year investment in pay in at least a decade. The investment is worth £200m.

Due to present economic uncertainty, the supermarket said the deal would just be for one-year and pay would be reviewed again with Usdaw in 2023.