Nye Cominetti, Principal Economist of the Resolution Foundation, said: “The more than £1 an hour increase in the National Living Wage next year is huge – the third biggest rise ever in both cash and real terms. At least 1.7 million workers across Britain will benefit from this latest rise, and many more will see their wages boosted indirectly.

“The minimum wage is one of Britain’s greatest ever policy triumphs – playing a key role in reducing low pay to a record low, and benefitting women and younger workers in particular. But it can’t be the only tool we use to improve people’s working lives. We now need to build on its success to drive up wider working conditions for low earners in terms of job security and access to holiday and sick pay.”