The group tasked with advising the government on setting minimum wage levels will recommend a 3 per cent increase to £6.50 per hour for adults, Business Secretary Vince Cable has told MPs.

The Low Pay Commission's recommendations must be approved by the government before they implemented, but these are usually accepted. Mr Cable said it would be the first increase in real terms since 2008 if the government accepts the proposal.

"It is faster than inflation and that is the first time in six years that has happened," Mr Cable said.

Katja Hall, Chief Policy Director of the Confederation of British Industry (CBI), said: “A 3% rise recognises the improvements we’re currently seeing in the economy.

At present, the minimum wage is £6.31 an hour for adults and £5.03 an hour for 18 to 20-year-olds.

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Useful Links

Confederation of British Industry
GOV.UK - National Minimum Wage Rates
HM Revenue & Customs