"This wage boost ensures we're making work pay and keeps us on track to meet our target to end low pay by the end of this Parliament," finance minister Rishi Sunak said in a statement ahead of his annual budget presentation on Wednesday.
The increase in the minimum wage is due to take effect in April 2022. Rates for people aged under 23, who are paid a lower minimum wage, are also due to rise, the finance ministry said.
($1 = 0.7272 pounds)
(Reporting by Paul Sandle and Andy Bruce; editing by William James and Kylie MacLellan)