The national living wage in the UK will rise to £11.44 in April next year, the Treasury has announced.
The rate is currently £10.42 for workers aged over 23, but the new figure will apply to 21 and 22-year-olds for the first time.
National minimum wage for 18 to 20-year-olds will also increase by £1.11 to £8.60 per hour, the government has said.
Apprentices will have their minimum hourly rates boosted, with an 18-year-old in an industry like construction seeing their minimum hourly pay increase by over 20%, going from £5.28 to £6.40 an hour.
Chancellor Jeremy Hunt said: ‘Next April all full-time workers on the National Living Wage will get a pay rise of over £1800 a year. That will end low pay in this country, delivering on our manifesto promise.
‘The National Living Wage has helped halve the number of people on low pay since 2010, making sure work always pays.’
Further measures will be set out by Hunt in Wednesday’s autumn statement.
By Nina Lloyd, PA Political Correspondent
Press Association: Finance
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