Rachel Reeves said the cost of living was the 'number one issue' for Brits and the lowest paid deserved to be properly rewarded as she unveiled the changes ahead of the Budget

Millions of low-paid workers will see a boost to their pay packets next year, the Chancellor has announced.

Rachel Reeves said the cost of living remained too high as she unveiled the changes for around 2.7 million workers ahead of tomorrow's Budget .

From April, the National Living Wage will rise to £12.71 per hour for workers over 21-years-old, an estimated annual hike of £900 for around 2.4 million of the lowest paid. The National Minimum Wage for 18 to 20-year-olds will also increase by 8.5% to £10.85 per hour.

The move will boost annual earning by £1,500 for a full-time worker - and will narrow the gap be

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