26 February 2014 Last updated at 15:25

Minimum wage: 3% increase proposed

The Low Pay Commission has recommended a 3% increase in the minimum wage to £6.50 an hour for adults, Business Secretary Vince Cable has told MPs.

If the government accepts the proposal, it would be the first increase in real terms since 2008, Mr Cable said.

"It is faster than inflation and that is the first time in six years that has happened," he said.

At present, the minimum wage is £6.31 an hour for adults and £5.03 an hour for 18-to-20-year-olds.