Millions of Brits are to get a pay rise as the minimum wage rises to £12.71 an hour. The Treasury confirmed after the Spring Statement on Tuesday (March 3) that the National Living Wage will increase from £12.21 to £12.71 for workers aged 21 or over from April 1.

The hike adds £1,040 to the average salary of a worker on the minimum wage working 40 hours per week, from £25,397 to £26,437. Workers aged 18-20 will see pay rise from £10 to £10.85 while 16-17 year olds and apprentices can expect £8 per hour, up from £7.55. The Treasury said the Government's number one focus is easing the cost of living.

It added: "That's why we are boosting the minimum wage for millions of workers." Some 2.7 million workers are expected to benefit from the pay rise.

Chancellor Rachel Reeves told MPs on Tuesday that unemployment is "set to peak later this year" before reducing over subsequent years.

The Office for Budget said the unemployment rate is forecast to hit 5.3% this year, up from the 4.9% forecast in November.

Data from the Office for National Statistics (ONS) showed unemployment lifted to a five-year-high of 5.2% in the three months to December.

The OBR had previously predicted the jobless rate would increase to 4.9% in 2026. New forecasts show that unemployment is on track to hit 4.9% in 2027 and 4.4% in 2028.

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It had previously forecast it would be 4.6% in 2027 and 4.3% the following year.

Meanwhile, Marks & Spencer Marks & Spencer dropped its pledge to pay workers in line with the real living wage in this year's salary rise.

The retail giant said it will increase pay by at least 6.4% from April 1 for retail staff, boosting wages to £13.41 an hour nationwide, or £14.74 per hour for those in London.

But M&S is no longer offering pay in line with the real living wage, which is a voluntary benchmark designed to be calculated on the real cost of living.

It is currently set at £13.45 an hour in the UK and £14.80 in London.