The national living wage is set to rise after the UK Government accepts the Low Pay Commissions recommendation of a 6.6% wage increase.
The rise is set to increase wages at around £1,000 a year for a full-time worker, according to the government, who also argue that this will compensate those who are losing £1,000 a year due to the cuts in universal credit.
Chancellor Rishi Sunak has said the increase "ensures we're making work pay and keeps us on track to meet our target to end low pay by the end of this parliament".
Read more: When is the Budget 2021? And how to watch Rishi Sunak's spending review
The rise comes ahead of the Budget announcement on Wednesday 27 October, in the House of Commons.
Minimum wage rates are also set to increase for younger workers.
When will the national living wage rise?
The wage rise will come into play from next April. It was advocated by the commission of an independent body that sets the rate.
The rise will be confirmed in the Budget by the Chancellor, along with other allocated funding announcements being confirmed for the UK.
So far, 11 areas of investment have been announced, including in skills and education, families, business, transport and culture.
How much will the national living wage rise by?
The increase will see a 59p boost from the current wage of £8.91 to the higher wage of £9.50 an hour which applies to workers aged 23 and over.
As the UK sees inflation rising by 3.1%, the increase in wage rate is also an effort to counter the effects of inflation for workers.
What is the national living wage?
The national living is only for workers aged 23 and over and was introduced in 2016. The rate is based on the cost of living.
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