Increases to the minimum wage taking effect on Saturday will directly benefit up to 2.3million workers but also create pressures for employers, according to the Low Pay Commission.

The National Living Wage (NLW) for workers aged 25 and above will rise from £7.20 to £7.50, covering just over eight per cent of the workforce in the South West.

According to the Low Pay Commission (LPC), half of all minimum wage workers work in just three occupations: retail, hospitality, cleaning and maintenance.

Analysing the available data, the LPC said businesses appeared to have absorbed the additional costs of paying the NLW so far through a small reduction in hours worked, a small increase in prices to consumers , a squeeze on profits, but not sufficiently large to lead to an increase in business failure, and an increase in productivity.

Commenting on the upcoming increase, Low Pay Commission chair Bryan Sanderson said: "The minimum wage increases on 1 April will bring another year of substantial pay rises for the lowest-paid.

"The minimum wage will cover more workers than ever, and ripple effects mean that the benefits could affect people earning above the minimum as well.

"Thanks to the minimum wage, hourly pay for the lowest-paid is at its highest ever level - unlike pay for other workers which remains well below its pre-recession peak.

"Accompanying pay increases there will inevitably be pressure for employers.

"Early data on employment effects remain inconclusive.

"While the labour market is performing strongly overall, there has been some weakening in employment growth across some low-paying occupations since 2015, though others are still seeing employment grow.

"These are turbulent times and we will continue to monitor the situation closely."

What do you think about the National Living Wages? Email mark@moosemarketingandpr.co.uk