The National Living Wage will increase from April, with the rate for workers aged 23 rising from £8.91 to £9.50.

This means full-time workers will receive an extra £1,074 a year before tax.

Chancellor Rishi Sunak will announce this change at today's Budget after advice from the Low Pay Commission.

We asked readers whether small businesses will struggle with this increase or whether it was a good thing for employees.

Gemma Denley-Doswell: "If you can’t afford to pay people enough to actually afford to live on you shouldn’t be in business.

Lee Sartin: I guess it’s all relative really. However, if inflation wasn’t rising so fast then the living wage wouldn’t have to increase. Admittedly the living wage is still below the rate of inflation so it won’t help to completely resolve the high cost of living in the UK. Unfortunately for small businesses to survive, the cost will be passed onto the consumer which will ultimately push inflation up even more.

Sandra Fowle: Businesses have had it good for a long time while paying a pittance in wages, not having to provide proper contracts, therefore not paying National Insurance Contributions, along with the employee who then applies for benefits to top up their pathetic salaries! It's time to revert back to proper working hours, contracts and people on the books getting paid a decent wage, so they have no need of social welfare.

Janet Johnson: As a local reputable garden maintenance business, we already pay over this increased rate as we’ve always believed in paying a fair wage and so this increase won't immediately directly affect us. However, this increase will push up prices generally and any extra disposable income will be short lived and, crucially, the disposable income for those currently above this level will DECREASE. I believe the challenge for small business is now in keeping and attracting the customers who already earn above this level but whose wages won’t increase. These people will have less disposable income as a result of having to accommodate price increases and may then not be able to afford services like ours. It’s a fine balancing act, that’s for sure.

Trevor Hewish: Should be minimum of ten pounds for all workers.

Darran Haynes: Just means I will still be on minimum wage, barely earning enough to live.

Danny Foyle: P rice of living to rise even more so people will have even less money to live on.

James Lever: That's if companies can afford to do this. Minimum wage earners don't work for large companies but usually independents that are already struggling and being smashed by the government, so I see businesses not bothering and closing or putting the prices up to pay for the increase which does nothing but mean these people end up spending the extra earned on the same thing. Waste of time or if you are going to do this, cut fuel tax and other tax at a time the country really needs the government to protect the people that are struggling. The system is broken, I can see the pounds having to change soon like when we went from shillings to pounds.

Timothy O'Sullivan: Energy prices through the roof, fuel prices at the highest ever level and rising so food and goods prices on the up and up. Inflation on its usual upward trend when the Tories are in, interest rates set to go up, and up. The few pence rise is already gone, and everyone is going to be poorer yet again. Except the rich.

Derek Rutland: It’s ok everyone getting more money but what about the people on PIP and Care? Cost of care is going up and up but the money to pay for it is not. I had £1.50ish rise every two weeks but yet still have need to pay the rise in cost of it. So my money is going down and down so now I look at food or heat. every one is now getting more but it’s ok to leave the disabled out. We have the same bills as everyone and if not it costs more to live when you're disabled as I feel the cold bad so I am in bed most of the day.

Vicent Howard: About a litre of beer for an hour of work. Wow, wind it into'em Bojo!