Minimum wage for apprentices introduced

The national minimum wage has risen from £5.80 an hour to £5.93 an hour, with corresponding increases for younger workers – 16- and 17-year-olds will see a rise from £3.57 an hour to £3.64.

For 18- to 20-year-olds the rate is increasing from £4.83 to £4.92 an hour.

The government is also planning to crack down on employers who flout the minimum wage laws. It said it would name and shame offenders and publicise breaches from 1 January.

Employment minister Edward Davey said firms have three months to put their house in order.

"Bad publicity can be a powerful weapon in the fight against employers who try to cheat their workers and competitors. Their reputation can be badly damage if they are seen to be flouting the law," he said.

The Low Pay Commission estimates that around 970,000 people stand to benefit from these increases.

The TUC welcomed the changes but the British Retail Consortium (BRC) warned further rises could damage job creation and said next year’s increase must be no more than 1.7 per cent as a larger rise would seriously hamper retailers’ ability to maintain and create jobs.

The BRC's Stephen Robertson said: "Trading conditions are tough, higher costs, such as next April’s National Insurance increase, will pile on even more pressure.

"Even a small increase in 2011’s minimum wage could choke retailers of vital potential to create new jobs."