Further wage increases are planned in the future.

Government approves a rise to £6.50 from October 2014

The National Minimum Wage will go up to £6.50 per hour in October 2014, with bigger increases planned for the future.

The Government says more than 1 million people will see their pay rise by as much as £355 per year.

The move is based on recommendations from the independent Low Pay Commission (LPC). This is the biggest cash increase low paid workers have seen since 2008.

LPC says the rise is manageable for employers and will support full employment. It is the beginning of a phase of wage increases, assuming the economy continues to improve.

Accepting the changes, business secretary Vince Cable said: "The experts will continue to advise government on future wage rises to help the low paid, and in the meantime I urge businesses to consider how all their staff - not just those on the minimum wage - can enjoy the benefits of recovery."

Mr Cable said the move "marks the start of a welcome new phase in minimum wage policy."

The National Minimum Wages rates from October 1, 2014, will be:

• A 19p (3 per cent) increase in the adult rate (from £6.31 to £6.50 per hour)
  
• A 10p (2 per cent) increase in the rate for 18 to 20 year olds (from £5.03 to £5.13 per hour)
  
• A 7p (2 per cent) increase in the rate for 16 to 17 year olds (from £3.72 to £3.79 per hour)
  
• A 5p (2 per cent) increase in the rate for apprentices (from £2.68 to £2.73 per hour)