New minimum wage rates as pay rise confirmed for 1.6 million people

Over a million workers earning the minimum wage will be getting a pay rise. A hike to wages for the lowest-paid people in the UK will be confirmed at the Budget later on Wednesday.

The increase of 6.7% will be above inflation and help provide a boost to the finances of some of the worst-off workers. The new rate from next April will be £12.12 an hour.

That's rising from the current minimum wage level of £11.44 an hour. That will work out to £25.50 a week extra or roughly £102 a month for those who working a full five-day week..

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Those numbers apply to adults over 20. Those aged between 18 and 20 will get a bigger boost of 16.3%, taking their earnings to £10 an hour. Their pay is currently £8.60 an hour. That means up to an extra £210 a month.

Labour is expected to say the minimum wage increase is part of its pledge to improve the lives of working people and the lowest paid in society. Chancellor Rachel Reeves will set out her full Budget - the first in almost 15 years - on Wednesday afternoon.

She has promised there will be no increases to income tax, National Insurance paid by workers or VAT. Fuel duty is expected to increase, however. Businesses are also likely to be told to pay more National Insurance contributions.