MILLIONS of workers will receive a pay rise tomorrow when the statutory minimum rates increase in a move unions believe will help boost economic growth.

The government said more than three million workers will benefit after Chancellor Rachel Reeves announced the increase in her Autumn Budget last year.

Ms Reeves has described the change as a significant step in the government reaching its manifesto pledge of a “genuine living wage for working people.”

From April 1 the national living wage will increase for everyone employed aged 21 and over, giving a pay rise of up to £1,400 over the course of a year, based on a 35-hour working week.

Under the 6.7 per cent rise, people will be paid £12.21 an hour, 77p more than the current living wage of £11.44.

Full-time workers can expect to make £26 more a week (£117 more a month), the government said.

The national minimum wage, which covers those aged 21 or under, will go up to £10 an hour for 18- to 20-year-olds, a 16.3 per cent rise, and to £7.55 for 16- and 17-year-olds, an 18 per cent increase.

TUC general secretary Paul Nowak said: “This increase will make a real difference to the lowest paid in this country at a time when one in six are skipping meals to get by.”

Unison general secretary Christina McAnea said: “Making work pay is vital to recharge the economy and help hard-pressed families walk a financial tightrope.

“A decent minimum wage rise gives low-paid workers greater spending power, which they can spend on their local high streets.”

GMB national secretary Rachel Harrison said: “A much-needed wage rise for millions of low-paid workers is welcome. But in care homes, schools, the NHS and so many other employers, workers are still not getting the levels of pay they deserve.

“It’s time that people doing some of the most important jobs in our society start getting proper recognition — starting with decent pay.”

Campaigners argued that the rates were still below the voluntary so-called real living wage of £12.60 an hour and £13.85 in London, which applies to all workers aged 18 and over.

More than 15,000 businesses are accredited to the Living Wage Foundation, which sets the voluntary rates.

Shopworkers union Usdaw announced that its members in Asda Express, Foodservice and Leon will be paid the voluntary rate by October.