The Government has announced that minimum wage rates will increase next year, resulting in a pay rise for millions of workers. Chancellor Rachel Reeves stated that she had accepted recommendations from the Low Pay Commission to ensure those on low incomes are "properly rewarded" for their work.

From April next year, the National Living Wage will see a 4.1% increase to £12.71 an hour for eligible workers aged 21 and over. The Government claims this will boost the gross annual earnings of a full-time worker on this rate by £900, benefiting approximately 2.4 million low-paid workers.

The National Minimum Wage rate for 18 to 20 year olds will rise by 8.5% to £10.85 an hour, reducing the gap with the National Living Wage.

This adjustment will result in an annual earnings increase of £1

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