What is the National Living Wage (NLW)?

A new rate of minimum pay for people aged 25 and over, initially set at £7.20 from April 2016 and rising to £9 by by 2020.

Why has Chancellor George Osborne brought in the NLW?

The Conservatives want to move from a "low wage, high tax, high welfare economy" to a "higher wage, lower tax, lower welfare" one.

What does it mean for the Minimum Wage.

The NLW replaces the Minimum Wage, currently set at £6.50 and rising to £6.70 in October, for people aged 25 and over. Those aged under 25 will still receive the minimum wage rate, with the youth rate for those aged between 18 and 21 set at £5.13.

Who will benefit?

Accountants KPMG say that more than 400,000 Scots will see an increase in their pay packets. Across the UK around 2.7 million workers will be affected.

What will they actually get?

A worker aged 25 or over receiving the Minimum Wage will get a pay rise of 50p an hour, from £6.70 to £7.20.

Is it compulsory, and does the Government enforce it?

All businesses will have to pay at least the NLW to workers aged 25 and over. Complaints about low pay will be handled by HM Revenue and Customs. The maximum fine for anyone failing to pay the statutory level increases from £5,000 to £20,000 in February last year.

Is it really a Living Wage?

Not quite. It's not as high as the rate recommended by the Living Wage Foundation, which called for a rate of £7.85 an hour. However, it has been welcomed by campaigners as a good start.

What will it cost business?

Payrolls will rise, but some of the cost has been offset by a cut to Corporation Tax of 18 per cent and changes to the National Insurance Contributions Employment Allowance.

How does the Tory's NLW compare to other parties pre-election proposals?

Surprisingly well. The £9 top rate is higher than both Labour's £8 proposal and the SNP's call for an £8.70 minimum wage by 2020. In fact, It's just £1 less that the £10 rate advocated by the Scottish Socialist Party.