Rachel Reeves set to raise minimum wage by 6% in the Budget

The national minimum wage is predicted to increase by up to 6% next year, according to reports.

Chancellor Rachel Reeves is expected to announce the raise in tomorrow’s budget, which could see more than a million low-paid workers receive a pay boost well above inflation rates.

Younger workers are also set to recieve an even bigger increase as part of a push to ensure 18-20 year olds are paid the same as those over 21.

However, despite ministers hailing the move as good news for ‘working people’, business have warned the impact could be negated by an expected increase in national insurance contributions from wages.

Around 1.6 million people currently recieve the ‘national living wage’ of £11.44 an hour, which is the minimum wage for over-21s. This is set to rise to £12.12 after the government promised to ‘raise the floor’ on wages.