The Chancellor is set to increase the so-called "national living wage" to £9.50 per hour in Wednesday's budget, Sky News has been told.
It will rise from the current living wage of £8.91 per hour for those aged 23 and over, which the government says will give full-time workers an extra £1,000 a year.
The national living wage is what the government has called the national minimum wage for anybody above 22-years-old since 2016.
Those below that age are eligible for what is called the 'national minimum wage', which will also see a rise.
People aged 21-22 will see an increase to £9.18 an hour from £8.36 and apprentices, who must be aged 16 or over and not in full-time education, will get a rise to £4.81 from £4.30.
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