Cameron backs plan to increase minimum wage by three per cent

Kate McCann
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PRIME Minister has announced that he will increase the minimum wage to £6.50 from £6.31 for over 21s, in line with a recommendation from the Low Pay Commission.

David Cameron pre-empted the chancellor’s Budget statement, when a final decision on the increase was expected to be confirmed. George Osborne has repeatedly called for a rise to £7.

“Restoring the value of the minimum wage is a vital part of how we secure a recovery for all,” Cameron said in a speech yesterday. Welcoming the first above inflation increase in six years, the Prime Minister added that it is “only affordable because of the difficult decisions we have taken with our long-term economic plan.”

His message sparked a row with coalition partner Nick Clegg, who is understood to be annoyed that Cameron did not leave the announcement to business secretary Vince Cable. Clegg said that Conservatives have a “fair amount of brass neck” after they took credit for increasing the personal allowance.