Costa Coffee Gives Baristas Pay Raise Above Inflation Rate – CoffeeTalk

Costa Coffee, a UK-based coffee chain, has announced a 5% pay increase for over 15,000 hourly-paid workers from April 1, above the current inflation rate of 2.5%. This increase is partly due to a step-up in the government-mandated national minimum wage. The Bank of England is likely to notice the increase as it assesses further moves in interest rates after cutting by a quarter-point earlier this month. Costa Coffee’s starting pay will rise to 12.60 pounds ($15.87) an hour, from 12 pounds. The new rates come ahead of the UK government’s 6.7% hike in the national minimum wage to 12.21 pounds for most adults starting from April. British pay growth accelerated in late 2024, suggesting the jobs market was holding up and indicating the Bank of England’s cautiousness about cutting interest rates despite a weak overall economy. More experienced baristas will see their pay increase to at least 12.93 pounds an hour, while staff in central London will receive an extra 1 pound an hour.

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