ALMOST 3 million workers are set to benefit from the "biggest ever" increase in the national living wage, ministers have said.

However, employers' organisations warned that the above-inflation increase - due to take effect in April - would "pile further pressure" on businesses' cashflows.

According to data from the independent Low Pay Commission, the 51p increase in the national living wage to £8.72 from £8.21 is the largest since the rate was introduced in April 2016.

The previous biggest increase was in April 2016, when the rate rose by 50p from £6.70 to £7.20 per hour.

The national living wage is the name for the minimum wage level payable to adults over the age of 25. Those under 25 and apprentices are paid at a lower rate.

Younger workers who receive the minimum wage will see their pay boosted by between 4.6 per cent and 6.5 per cent depending on their age, with 21 to 24-year-olds seeing a 50p increase from £7.70 to £8.20 an hour.

Hannah Essex, co-executive director at the British Chambers of Commerce, said an above-inflation pay increase came at a difficult time for businesses.

She said: "Businesses want to pay their staff a good wage. But many have struggled with increased costs in a time of great economic uncertainty.

"Raising wage floors by more than double the rate of inflation will pile further pressure on cashflow and eat into training and investment budgets."