Chancellor Sajid Javid has pledged to raise the National Living Wage to £10.50 by 2024.
He also said he would expand the reach of the mandatory minimum wage to cover all workers over the age of 21, down from the present 25.
He said: ‘Over the next five years, we will make the UK the first major economy in the world to end low pay altogether.’
Mr Javid said he was setting a new target for the ‘National Living Wage’, raising it to match two-thirds of median earnings and ‘giving four million people a well-earned pay rise’.
He also said the policy would “help the next generation of go-getters to get ahead”.
The current rate for over 25s is £8.21 – but the Living Wage Foundation says it should already be £9 across the UK and £10.55 for those in London.
Mr Javid also confirmed £25bn for road projects, £220m for bus improvements and £5bn for digital infrastructure in his speech, along with extra funding for youth services.