Millions of UK workers will see a pay rise next year as the National Living Wage is set to increase.

The hourly rate will go from £8.91 an hour to £9.50, Chancellor Rishi Sunak announced on Monday (October 25).

The Treasury confirmed the move for all people aged 23 and over, and it will be announced in the Budget on Wednesday, October 27.

Harlow’s MP, Robert Halfon, has strongly welcomed the Chancellor’s budget announced today which he said: “This Budget delivers on the pledges I made to residents and sets out a plan for a stronger economy for Harlow and the country.”

An end to the public sector 'pay freeze' was also annonced meaning frontline workforces - including nurses, police officers, prison officers and teachers will benefit from a pay rise.

The Treasury said exactly how much of a pay rise public sector workers receive depends on the recommendations from the independent pay review bodies.

The UK’s fiscal watchdog warned that the cost of living could rise at its fastest rate for 30 years.

The Office for Budget Responsibility's latest forecast says that inflation, which measures the change in the cost of living over time, is set to jump from 3.1 per cent to an average of 4 per cent next year.

The chancellor acknowledged in his Budget and conceded that the inflation rate was "likely to rise further" from its 3.1 per cent rate in September.

The chancellor said that was because of increased demand for energy and supply chain issues as economies and factories recover from coronavirus curbs.

Last November, Mr Sunak “paused” public sector pay increases for 2021/22, with the exception of the NHS and those earning less than £24,000, after heavy borrowing during the Covid-19 crisis.

Reacting to the Budget announcement by the Government, Mr Halfon said: “The Budget has been delivered in the most difficult of economic circumstances, following the biggest recession in 300 years.

“I pledged to the people of Harlow at the last election that not only would I continue to work hard for Harlow, but I would do everything possible to cut the cost of living, champion education and skills and protect our NHS.

“Yet, despite the economic picture, I am delighted that, working with the Government, I've been able to keep those pledges.”