Chancellor calls increase to £12.21 an hour a ‘significant step’, with 18- to 20-year-olds in line for a 16% increase

The national minimum wage will go up to £12.21 an hour in April after the chancellor confirmed a 6.7% increase, with more than 3 million low-paid workers in line for a pay rise.

Rachel Reeves described the move, worth £1,400 a year for an eligible full-time worker, as a “significant step” towards delivering on Labour’s manifesto promise to introduce a “genuine living wage for working people”.