David Cameron has said that he will back an above-inflation rise in the minimum wage ahead of next year’s general election.
Cameron said he will back the Low Pay Commission, which last week recommended a rise to £6.50, representing a 3% increase. The Prime Minister said it will take affect in October.
It will be the first above-inflation increase in the national minimum wage for five years, and is likely to worry some retailers who have claimed that a hike could prevent them hiring staff could damage the economic recovery.
However, the £6.50 level will offer some relief to retailers after the Chancellor last month mooted an increase to £7.
Speaking during a visit to Coventry today, Cameron said: “It means that as we recover from the great recession, hard-working people on the minimum wage - who have suffered during the tough times - can know they will share in the recovery.”