The national living wage is set to increase to at least £11 an hour from next April, the chancellor has confirmed.

In a speech to the Conservative Party conference, Jeremy Hunt said the move would benefit two million of the lowest-paid workers.

He also promised to review the sanctions regime to ensure “fairness” in the benefits system.

The national living wage – as it has been officially called since 2016 – is the lowest amount workers aged 23 and over can be paid per hour by law, and is currently £10.42 an hour. There are lower rates for younger workers.

The rates are decided each year by the government, based on the advice of an independent advisory group, the Low Pay Commission. Ministers generally accept the commission’s recommendations.

The government had already set a target for the national living wage to reach two-thirds of median hourly pay by October next year.

The Low Pay Commission has not yet confirmed its recommendations for next year, but it estimates the rate needed to meet the government’s target should be between £10.90 and £11.43.

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