The adult rate will increase by 1.9% from £6.19 to £6.31 an hour.

The rates for 18 to 20 year olds will increase by 5p to £5.03 and for 16 to 17 year olds by 4p to £3.72. The apprentice rate will increase by 3p to £2.68. Katja Hall, CBI Chief Policy Director, said: “Pay restraint has been crucial in creating jobs in this tough economic climate.

“The LPC has struck a careful balance in setting the rates given sluggish growth, particularly in recommending a cautious approach to youth pay.

“The LPC will need to monitor the impact of raising the adult rate very carefully. Given average earnings this year are already lower than expected, we must make sure the minimum wage doesn’t limit jobs in key sectors, by outstripping pay across the rest of the workforce.

“The law is clear that employers must pay apprentices the legal minimum wage. It is right that ministers tighten up compliance and enforcement.”