The Government has confirmed that the adult minimum wage is to rise by 3% to £6.50 from October, a rise of 19p.

Business Secretary Vince Cable today announced that the Government would follow the advice of the Low Pay Commission and implement the above-inflation increase.

The rate for 18 to 20-year-olds will rise by 2%, or 10p, to £5.13 per hour. For those aged 16 and 17, the new rate will be £3.79, representing a rise of 2% or 7p.

Cable said: “The recommendations I have accepted today mean that low-paid workers will enjoy the biggest cash increase in their take home pay since 2008.”

The Federation of Small Businesses tweeted: ”Rise slightly more than we hoped for, but at 1% over inflation most small firms should be able to afford this.”