Morrisons says it is to extend its 10% discount for NHS workers until the end of the year as the government faces a backlash over its planned 1% hike in pay for nurses.

The UK’s fourth-largest supermarket chain made the announcement as it revealed financial results for 2020 that showed a 62% plunge in pre-tax profits despite a surge in sales during the COVID-19 pandemic.

The chain first introduced its discount for NHS workers in April last year as the country grappled the first lockdown imposed by the government to curb the spread of the disease.

Morrisons said its discount reflected “continuing gratitude” for the work of the health service during the crisis to date.

The government is facing a charge from critics that it does not value the sacrifices made by nurses as it defends its handling of a proposed award of 1%.

As hospital staff battled surging cases, supermarkets were benefiting from their status as essential retail.

Morrisons reported an 8.6% rise in group like-for-like sales during 2020 with total revenues hitting £17.6bn.

But it said that profit before tax and exceptional items slid by 50.7% to £201m – a result of £290m in coronavirus-related costs including staff absences and measures to keep staff and customers safe.

The costs figure included £230m in business rates relief that has been handed back to the Treasury.

Profit before tax, its bottom line, fell to £165m from £435m the previous year once other costs, including restructuring costs, were included.

Chief executive David Potts said: “Morrisons key workers have played a vital role for all our stakeholders during the pandemic, especially the most vulnerable in British society, and their achievements over the last year have been remarkable.

“I am delighted that we are recognising their enormous contribution by becoming the first supermarket to pay a minimum of £10 an hour to all store colleagues.

“We are also today showing our continuing gratitude and appreciation for the incredible work of other key workers in the nation, by extending our 10% discount for NHS staff for the whole of 2021.”

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