THE planned increase of the minimum wage and the UK Government’s “living wage” still do not “reflect the real cost of living”, the Scottish Government has said.

The Westminster-set minimum wage, for those aged up to 23, and the “living wage”, for those aged over 23 and consistently set below the rate of the Real Living Wage, are due to rise on Saturday.

The over-23 rate will rise from £9.50 to £10.42 on April 1 – still below what the Living Wage Foundation recommends.

Trade unions have also hit out at the below-inflation increase, saying the rise will not help “hard-pressed families” enough.

Scotland’s Wellbeing Economy Secretary Neil Gray said: “While we welcome the rise in the national living wage and national minimum wage rates announced today, these increases still do not reflect the real cost of living.

READ MORE: Demand for new Scottish currency would be boosted by job guarantee, report argues

“That is why the Scottish Government champions the real living wage. Currently set at £10.90 per hour, it is based on actual living costs and applies to employees aged 18 and over. Research shows the real Living Wage can enhance productivity, reduce absenteeism and improve staff morale.”

The TUC’s general secretary Paul Nowak said the minimum wage is going up less than inflation and food prices.

He said: “Everyone who works for a living deserves to earn a decent living, but tomorrow’s below-inflation increase to the minimum wage is not going to lift the pressure on hard-pressed families.

“A large chunk is going to be wiped out by soaring energy bills, and with food prices shooting through the roof, many low-paid workers will not see a positive difference in their spending power.

“It’s time to put an end to low-pay Britain. That means getting the minimum wage to £15 per an hour as soon as possible, and it means introducing industry-wide fair pay agreements so that all workers have a minimum set of pay and rights – starting with social care and the ferries sector.”

READ MORE: 'Significant concerns' over UK's Asia-Pacific trade deal, says Scottish Government

Katherine Chapman, director of the Living Wage Foundation, said: “This significant rise in the national living wage is a welcome boost to ease some of the pressure inflation continues to pile onto low-paid workers.

“It remains lower than the real living wage which is based on the cost of living. The good news is we have seen record numbers of employers signing up to pay the higher real living wage to protect their lowest paid staff during these tough times.

The End Fuel Poverty Coalition estimated that the benefits of the first 73 hours of work each month under the updated national living wage will be “wiped out” by the energy bills increase, which also comes in from April 1.

Simon Francis, a co-ordinator with the group said: “As employers give people on the NLW [national living wage] pennies, the Government is taking pounds out of their pocket due to the end of the energy bills support scheme.”