The national minimum wage will rise to £5.73 an hour in October, Prime Minister Gordon Brown has announced.

It will rise by 3.8% from £5.52. For 18 to 21-year-olds the rate will be £4.77, up from £4.60, while 16 to 17-year-olds will get £3.53, up from £3.40.

The government said that one million people would benefit from the increase, two-thirds of whom would be women.

Mr Brown said that the minimum wage had gone up by 60% since the policy was introduced by the government in 1999.

The original level when the minimum wage was launched was £3.60 an hour. It was last increased in October 2007.

Business Secretary John Hutton said: "The national minimum wage remains one of the most important rights introduced by the Government in the last decade."

"Before it was introduced, some workers could expect to be paid as little as 35 pence an hour. Our legislation has ensured that can no longer happen.

"I am proud of the minimum wage. It makes a real difference to the lives of many of our lowest-paid workers and protects them from exploitation. It also creates a level playing field for business and boosts the economy."

Enforcement

The government also wants to crack down on those employers not paying the correct amount, with the maximum penalty increased to an unlimited fine.

In December, the TUC said it believed 150,000 workers were still being paid less than the statutory minimum.

Unions have long called for enforcement powers in this area to be strengthened.

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