National Living Wage to increase for millions: how much it will rise by and when

The National Living Wage will be increased from £8.91 an hour to £9.50 next year.

The Treasury confirmed the move for all over-23s on Monday ahead of Chancellor Rishi Sunak’s Budget this week.

How much will the increase be and when will it come into effect?

The 59p hourly boost will mean a full-time worker on the living wage will get a pay rise of more than £1,000 per year.

It will take effect from 1 April next year.

But critics questioned how much better off workers will be considering the Chancellor has already hiked National Insurance and cut Universal Credit.

Who will get an increase in pay?

The 6.6% hike is more than twice the current consumer price inflation rate of 3.1%.

While the National Minimum Wage applies to everyone of school-leaving age, the National Living Wage applies to everyone aged 23 and over.