By Becky Morton

Political reporter in Manchester

The national living wage is set to increase to at least 11 an hour from next April, the chancellor is to confirm.

In a speech to the Conservative Party conference Jeremy Hunt is expected to say the move will benefit two million of the lowest-paid workers.

He will also say he intends to toughen sanctions for people on benefits who do not take steps to find work.

It comes as the government is under pressure from some Tories to cut taxes.

The national living wage - currently 10.42 an hour - sets out the lowest amount workers aged 23 and over can be paid per hour by law.

Younger workers are paid at a lower rate.

The rates are decided each year by the government, based on the advice of an independent advisory group, the Low Pay Commission.

Ministers generally accept the commission's recommendations.

The government had already set a target for the national living wage to reach two-thirds of median hourly pay by October next year.

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The Low Pay Commission has not yet confirmed its recommendations for next year but it estimates the rate needed to meet the government's target should be between 10.90 and 11.43.

In his speech on Monday Mr Hunt is expected to say that whatever the recommendation, the rate will increase to at least 11 an hour.

The Conservatives said this meant the annual earnings of a full-time worker on the national living wage would increase...

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