Chancellor John Healey is expected to unveil plans on Wednesday to raise the minimum wage by nearly 4 per cent, according to reports.

The UK’s National Living Wage, which applies to workers aged 21 and over, is set to rise by 3.9 per cent, moving from £12.71 to around £13.20 ($17.63) per hour, The Times reported.

Meanwhile, the National Minimum Wage for those aged 18, 19 and 20 will increase broadly in line with older workers, rising from £10.85 to approximately £11.27 an hour.

The Treasury declined to comment on the reports.

If confirmed in Wednesday’s budget statement, the rises would take effect in 2027 and would signal the end of younger employees receiving larger percentage increases than their older peers amid warnings young people are being priced out of employment.

Healey is set to announce his autumn statement on Wednesday (Getty)

Britain's minimum wage is one of the highest among advanced economies as a share of median earnings, following efforts by successive governments to lift it to…