Pay increases, worth more than £1,800 a year for millions of full-time workers, are set to be announced by the Chancellor today.

Jeremy Hunt will announce an almost 10 per cent increase in the National Living Wage in his autumn statement this afternoon.

The boost will see the National Living Wage increase by more than £1 an hour, from £10.42 to £11.44.

Eligibility for the National Living Wage will also be extended by reducing the age threshold to 21-year-olds for the first time. 

A 21-year-old will get a 12.4% increase, from £10.18 this year to £11.44 next year, worth almost £2,300 a year for a full-time worker.

National Minimum wage rates for younger workers will also increase, with 18 to 20-year-olds getting a wage boost to £8.60 per hour – a £1.11 hourly pay bump.

The Department for Business and Trade estimate 2.7 million workers will directly benefit from the 2024 National Living Wage increase.

Chancellor of the Exchequer Jeremy Hunt said: “Next April all full-time workers on the National Living Wage will get a pay rise of over £1,800 a year. That will end low pay in this country, delivering on our manifesto promise.

The Northern Echo:

“The National Living Wage has helped halve the number of people on low pay since 2010, making sure work always pays.”

What is the National Living Wage?

The National Living Wage was introduced in 2016 and currently sets the minimum hourly pay a person over the age of 23 earns when working.

The new rate will now apply to 21 and 22-year-olds, and means that the government has met its ambitious target of lifting the National Living Wage to two-thirds of median earnings by 2024, ending low hourly pay for those on the National Living Wage.

What is the autumn statement?

It is the Chancellor’s main opportunity to make tax and spending announcements outside of the Budget and Mr Hunt will set out his plans in the Commons at around 12.30pm on Wednesday.