The National Living Wage is to increase to at least £11 an hour from next April, Chancellor Jeremy Hunt has told the Conservative Party conference.
The National Living Wage, which is currently £10.42 an hour, sets out the lowest amount workers aged 23 and over can be paid per hour by law. Younger workers are paid at a lower rate.
The rates are decided by the government, based on the advice of an independent advisory group, the Low Pay Commission (LPC). The LPC has not yet confirmed its recommendations for next year, but it estimates the rate needed to meet the government’s target should be between £10.90 and £11.43.
The chancellor is also set to announce that ministers will look again at the benefits sanctions regime to help get people back to work.
Hunt is expected to tell the conference: “Whilst companies struggle to find workers, around 100,000 people are leaving the labour force every year for a life on benefits.”
Further details on the plans for benefits are unlikely to come until the Autumn Statement in November.
