Business Secretary Peter Kyle says the hike is about investing in low-paid workers, but some business owners worry it'll push up their costs even more.
Meanwhile, the Living Wage Foundation thinks it should go further, to £13.45 an hour, saying it's still not quite enough for many people to get by.
For young workers like Ifunanya Ezechukwu, though, the extra cash is a relief—even if she expects prices for things like services might go up too.