1.8 million workers earning the National Living Wage (NLW) will receive an additional £690 over the year from 1 April — the biggest ever increase.

The National Minimum Wage is also increasing; this includes £7.70 per hr for 21- to 24-year olds, providing an additional £580 over the year for full-time workers, and £6.15 per hour for 18- to 20-year olds, providing full-time workers with an additional £455 over the year.

Taken together with changes to NLW, 2.1 million people will be receiving a pay increase.

Business Minister Kelly Tolhurst said: “We are committed to making sure that UK workers get a fair day’s pay; the rise in the National Living Wage and the National Minimum Wage delivers on this commitment.

"Since the National Living Wage was announced in 2015, it has helped to protect the lowest paid — increasing faster than inflation and average earnings.”

The Chancellor of the Exchequer, Philip Hammond, said: “This government is committed to raising productivity performance across the income spectrum, so that the wages of the lowest-paid can increase sustainably over time.

"While the proportion of low-paid jobs is now at its lowest level for 20 years, we are going further by asking Professor Arindrajit Dube — a leading expert in the field — to undertake a review of the international evidence of minimum wages on productivity and employment.”

From 6 April, all workers — including casual and zero-hour workers — have the right to receive a payslip; the maximum
employment tribunal fines for employers not complying with this will quadruple from £5,000 to £20,000.