Minimum wage to rise 2%

The 13p rise is in line with the recommendation made by the Low Pay Commission but below the retail price index measure of inflation that is usually used as a benchmark for wage increases. In May,  that figure was 5.1%.

The Association of Convenience Stores has welcomed the measured increase.

Its chief executive James Lowman said: “While local shops support the minimum wage, and strive to pay above this rate, it has become increasingly difficult to maintain staffing levels with the year on year above inflation increases.”

“It is a good step forward for the Government to acknowledge the impact of the national minimum wage on small firms in particular.”

The new rate will come into force for workers over the age of 21. Workers on the minimum wage aged 18-20 will see their wages increase 9p £4.92 an hour. 16 and 17 year-olds will get 7p more an hour, with £3.64.

The Government reveals its emergency Budget tomorrow, which will outline details of its bid to cut the defecit through slashing public spending and rising taxes.