Minimum wage set to rise but 18-20 year-olds will not get bigger increase
Chancellor John Healey will reveal the new pay rates in the Budget, and has also announced measures to help households with the cost of living.
The rise in the minimum wage is expected to be announced in the Budget, but 18-to-20 year-olds are set to see lower increases than in previous years, the BBC understands.
Pay for younger workers will rise in line with the increase in minimum pay for employees aged 21 years and over.
However, the increase for younger workers is lower than that seen in the previous two years, when Labour raised the rate to meet a manifesto promise that it would remove "discriminatory age bands" with all adults entitled to the same minimum wage.
It says removing tariffs from 100 food items could save households up to £21 per year - or 40p a week - when combined with existing tariff suspensions that were introduced in June.