NATIONAL LIVING WAGE SET TO INCREASE – Wage to rise  to at least £11 an hour

The national living wage is set to increase to at least £11 an hour from next April, the chancellor is to confirm.

In a speech to the Conservative Party conference, Jeremy Hunt is expected to say the move will benefit two million of the lowest-paid workers.

He will also say he intends to toughen sanctions for people on benefits who do not take steps to find work.

It comes as the government is under pressure from some Tories to cut taxes.

The national living wage – 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 government decides the rates each year, based on the advice of an independent advisory group, the Low Pay Commission.

Ministers generally accept the commission’s recommendations.

The government had already set a target for the national living wage to reach two-thirds of median hourly pay by October next year.