Keir Starmer and Rachel Reeves in 10 Downing Street.

Millions of low-paid workers will receive inflation-busting pay rises when Rachel Reeves delivers her make-or-break Budget on Wednesday.

The national minimum wage and national living wage will both go up as the chancellor tries to tackle the cost of living.

However, Reeves will also increase a range of taxes as she tries to fill a £20 billion black hole in the public finances.

From April next year, the national living wage will increase by 4.1% to £12.70 an hour in a move which the Treasury says will hand around 2.4 million low-paid workers an extra £900 a year.

The national minimum wage for 16 and 17-year-olds will increase by 6% to £8 and hour, while it will go up by 8.5% to £10.85 hour for 18 to 20-year-olds.

In all, around 2.7 million workers will see their wages rise by up to £1,500 as a result.

The chancellor said: “I know that the cost of living is still the number one issue for working people and that the economy isn’t working well enough for those on the lowest incomes.

“Too many people are still struggling to make ends meet,........

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