The minimum wage will rise on 1 October, benefiting more than one million workers.
Adults must be paid at least £5.05 an hour, up from £4.85, while 18 to 21 year olds will get 15p more at £4.25.
The increase follows a report from the Low Pay Commission which said the number of jobs had grown since the minimum wage was introduced in 1999.
Unions welcomed the rise and said the "bleatings" of business looking for a wage freeze should be ignored.
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Sir Digby Jones, director general of the CBI added that next year's planned rise to £5.35 an hour would have a "serious impact" on some sectors of the economy.
"The UK is already edging towards the top of the international minimum wage league table," Sir Digby said.
http://news.bbc.co.uk/1/hi/business/4294512.stm------------------------------------------------
Not to get off topic from the first post, but there are a few things this government have got right (this being one of them). I'd also put banning hunting, civil unions and the tax credit system in there. Any others?