This is the largest increase in the national minimum wage since 2008.
However, the biggest rise comes for apprentices – the national minimum wage for apprentices will go up by 20% to £3.30 an hour, an increase of 57p.
This is much higher than the rate of £2.80 an hour recommended by the Low Pay Commission in February, and is a record rise.
Prime minister David Cameron said: “At the heart of our long-term economic plan for Britain is a simple idea – that those who put in should get out; that hard work is really rewarded; that the benefits of recovery are truly national.”
Deputy prime minister Nick Clegg added: "Whether you’re on low pay or starting your dream career through an apprenticeship, you will get more support to help you go further and faster.”
The national minimum wage for 16- to 17-year-olds is due to rise by 8p an hour to £3.87, and for 18- to 20-year-olds by 17p an hour to £5.30.