Workers aged 18 to 20 will see their pay rise by 85p to £10.85, while under-18s and apprentices will get a 45p increase to £8 an hour.
20 pension funds and insurers are launching the Sterling 20 group to channel savings into infrastructure and sectors like AI and fintech.
The payment will be £200 per household, or £300 where someone is over 80, and paid automatically.
This initiative aims to address skills shortages and support the construction of 1.5 million homes.
The NLW for those aged 21 and over will increase by £0.77 to £12.21, 1st April 2025 onwards.