Lidl has announced plans to raise the minimum wage it pays its staff above the new national living wage.

More than 9,000 workers in England, Scotland and Wales will be paid £8.20 per hour, and £9.35 in London, worth an estimated £1,200 a year. It currently pays at least £7.30 outside London and £8.03 in the capital.

Its expected that around 53% of the budget supermarket's staff will benefit from the wage increase.

The new national living wage will see all employers pay over 25 year-olds £7.20 from April 2016, rising to over £9 by 2020.

The higher wage brings it in line with the Living Wage as set by the Living Wage Foudation, which is set to be increase in November. The move is expected to cost Lidl £9 million a year.

Sainsbury's has hit back after other supermarkets were urged to follow Lidl's example. The supermarket explained that while it pays a lower wage, staff are paid during their breaks, whereas Lidl's staff are not. Sainsbury's claimed that workers would earn just £12 more a week with Lidl's new, higher wage.