The move will benefit around 2.4 million workers and is a £690 annual pay rise for a full-time worker.

The NLW is the statutory minimum for workers aged 25 and over and was introduced in April 2016.

The recommendation to increase it came from the independent Low Pay Commission (LPC).

Bryan Sanderson, Chair of the LPC, said:“I am pleased that the government has again accepted in full the Low Pay Commission’s recommendations for future minimum wage rates.
“The increase in the National Living Wage (NLW) to £8.21 in April 2019 will ensure a pay rise for the lowest-paid workers that exceeds both inflation and average earnings.”

The government said it would also accept all of the LPC’s recommendations for the other national Minimum wage rates from April 2019 including:

• increasing the rate for 21 to 24 year olds by 4.3% from £7.38 to £7.70 per hour
• increasing the rate for 18 to 20 year olds by 4.2% from £5.90 to £6.15 per hour
• increasing the rate for 16 to 17 year olds by 3.6% from £4.20 to £4.35 per hour
• increasing the rate for apprentices by 5.4% from £3.70 to £3.90 per hour.