The National Living Wage will increase by £1.02-an-hour from April, the Treasury has announced. Chancellor Jeremy Hunt said: "Next April all full-time workers on the National Living Wage will get a pay rise of over £1,800-a-year. That will end low pay in this country, delivering on our manifesto promise.

"The National Living Wage has helped halve the number of people on low pay since 2010, making sure work always pays." The changes announced today are expected to impact around two million people. Mr Hunt said he would be accepting the changes suggested by the commission when he spoke at the Conservative Party conference in October.

Speaking at the time, the chancellor said the increase would be "a pay rise for two million workers". "And the wages of the lowest paid over £9,000 higher than they were in 2010 - because if you work hard a Conservative government will always have your back," he said.

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The announcement comes ahead of Wednesday's autumn statement, where Mr Hunt will update the UK on the state of country's economy. Speaking in October, a government spokesperson said it would abide by the Low Pay Commission, which recommends the level of the national living and minimum wages.

It came as the Living Wage Foundation said employers in London that are part of the scheme will pay an enhanced rate of £13.15 an hour to cope with the extra costs of living in the capital. The commission has not yet confirmed its proposals for next year, but it estimates the rate needed to meet a government target that it should be at least two-thirds of median hourly pay by October next year, will mean the level is between £10.90 and £11.43.

“Unlike other organisations, the Low Pay Commission also considers the impact of changes to our National Living Wage on businesses and the economy to ensure we strike the right balance,” they said.