Millions set for £1,400 pay rise next month
Millions of people across the UK will receive a pay rise from next month, with some seeing an increase of as much as £1,400.
The pay rise comes as the National Living Wage and National Minimum Wage increase.
More than 3 million workers in shops, restaurants and workplaces across the UK will benefit from the boost.
Initially announced at the Budget in Autumn, the 6.7 per cent increase will be worth £1,400 a year for an eligible full-time worker.
The National Living Wage will increase to £12.21 per hour, while the new National Minimum Wage will be set at £10.00 per hour.
Chancellor of the Exchequer Rachel Reeves (Image: Ian Forsyth/PA Wire)
The National Minimum Wage for 18-20-year-olds is also set to increase by £1.40 to £10.00 per hour - an increase which means full-time younger workers eligible for the rate will see their pay boosted by £2,500 a year.
Employment Rights Minister Justin Madders said: "Economic growth only matters if working people are feeling the benefits.
"This will be a welcome pay bump for millions of workers who in turn will spend more in the real economy boosting our high streets.
"Our Plan for Change is putting money back into people's pockets and delivering better living standards across the country."
Chancellor Rachel Reeves added: "This Government promised a genuine living wage for working people that will support people with the cost of living, creating a workforce that is fit and ready to help us deliver number one mission to growth the economy.
"This pay boost for millions of workers is a significant step towards delivering on that promise."
The National Minimum Wage is the minimum amount an employer must pay per hour for most workers, while the National Living Wage is the higher rate that applies to workers aged 21 and over.
This is the first time the National Living Wage has taken into account the cost of living and inflation and marks the first step towards aligning the National Minimum Wage for 18-20-year-olds and National Living Wage to create a single adult wage rate.
Low Pay Commission Chair Baroness Stroud said: "The increases we recommended are a big step towards making work pay and achieving a genuine living wage.
"These rates secure a real-terms pay increase for the lowest-paid, and substantial increases for young workers make up some of the ground lost against the adult rate over time.
"It's important we continue to assess the effects of these changes on employers and workers; to that end, the Low Pay Commission will be consulting with both groups in the coming months."