Two million people will be affected by the increase. Full-time workers on the minimum wage will earn £1,000 (€1,153) more next year, says the Conservative Party.
Britain's minimum wage will be raised to £11 (€12.67) per hour, Finance Minister Jeremy Hunt will confirm on Monday at the Conservative Party's annual conference.
The change is due to take effect from the start of the next financial year, April 2024.
According to pre-released extracts of Hunt's speech, he will explain how his right-wing party is dedicated to "improving the lives of working people" by "ending low pay".
The Conservatives have set a target to raise the National Living Wage to two thirds of the median income by October next year.
The government says two million people will be affected by the expected increase, with minimum earnings currently at £10.42 (€12) per hour.
Lagging behind in the polls, the Conservatives are trying to set out policies ahead of nationwide elections expected by 2025.
Government forecasts in November revealed the UK faced its biggest drop in living standards on record, with food and energy bills shooting up due to the Ukraine war, Brexit and the COVID pandemic.
Millions in Britain are having to cut down or skip meals amid the cost of living crisis, the Joseph Rowntree Foundation found recently.
The anti-poverty charity said this "horrendous new normal" was due to poor state support and rampant food price inflation.
Since then, the UK has however seen a surprise fall in inflation.
On Monday, Jeremy Hunt is also expected to announce reforms to the benefits system, aimed at encouraging unemployed people to return to the job market.
“At a time when companies are having difficulty finding workers, around 100,000 people leave the job market each year, living on social assistance,” he will explain.
“Those who are not even looking for a job do not deserve the same social assistance as those who are really trying to do the right thing,” he is expected to say.
Unemployment in the UK is currently low by historic standards, according to Full Fact, a UK fact-checking organisation.
Tens of thousands of workers in lower-paid sectors of the UK economy have benefited from a gradual improvement in employment terms since COVID and Brexit.
Both local and global events have forced British companies to work harder to find staff in a tight labour market.