MINIMUM WAGE TO RISE TO £5.52

The minimum wage is to rise by 17p - about 3% - from £5.35 to £5.52 an hour from October 2007.

The increases will affect over 1.3 million workers in the UK, and are in line with inflation.

The move was recommended by the government’s think tank on wages, and accepted by Trade and Industry Secretary Alistair Darling. He said, “Just 10 years ago home workers could be paid as little as 35p an hour, cleaners £1.30 an hour and security guards £2.25 an hour, which was bad for families and just plain wrong," he said.

"I am proud of the minimum wage, proud of how it is helping families and proud of the role it plays in the modern economy we are delivering."

The rate for workers aged 18-21 will rise by 15p to £4.60 an hour, while workers aged 16 and 17 will get a 10p rise to £3.40 an hour.