Businesses will be forced to let workers share the fruits of recovery with the biggest real-terms increase in the minimum wage since the financial crisis . The standard rate will rise from October to £6.70 an hour , benefiting 1.4million , while the rate for apprentices will go up by a fifth – the largest increase on record . The changes follow the Prime Minister 's insistence that businesses should give their workers a pay rise . Scroll down for video . The standard rate of the National Minimum Wage will rise from October to £6.70 an hour , benefiting 1.4million workers . Firms ' costs are falling thanks to the strongest economic growth for seven years and the lowest inflation for more than a decade . London Mayor Boris Johnson – a frontrunner to succeed David Cameron – has called for boosting wages even further to be the 'guiding Conservative economic mission ' in the next Parliament . Chancellor George Osborne and Business Minister Matthew Hancock have also been pushing the independent commission which recommends the minimum wage rate for above-inflation rises . Today , Mr Cameron and Deputy Prime Minister Nick Clegg will say the standard rate is to increase by 3 per cent – the largest real-terms rise since 2008 . The Low Pay Commission had recommended that the minimum wage for apprentices should rise by 2.6 per cent , to £2.80 an hour . Prime Minister David Cameron is set to announce that the minimum wage will rise by 3 per cent to £6.70 in October . However , the Government has decided it should be increased much further , by 20 per cent , to £3.30 . There will also be a 3 per cent increase in the rate for 18 to 20-year-olds , to £5.30 per hour . The minimum wage for 16 to 17-year-olds will go up by 2 per cent , to £3.87 per hour . Mr Cameron said : 'At the heart of our long-term economic plan for Britain is a simple idea ... that hard work is really rewarded , that the benefits of recovery are truly national . ‘ That ’ s what today ’ s announcement is all about – saying to hardworking taxpayers , this is a Government that is on your side . It will mean more financial security for Britain ’ s families ; and a better future for our country. ’ Deputy Prime Minister Mr Clegg said : ‘ This is just one of the many ways in which we ’ ve created a fairer society whilst building a stronger economy . If you work hard , this government is behind you all the way . Whether you ’ re on low pay or starting your dream career through an apprenticeship , you will get more support to help you go further and faster. ’ Senior Tories are calling on the Chancellor to go further , and consider tax breaks for firms who pay the ‘ living wage ’ , set above the national minimum wage . The living wage is currently set at £7.85 an hour outside London and £9.15 in the capital . Ed Miliband has said he wants to increase the minimum wage to £8 an hour by 2019 . Mr Osborne has proposed a legal minimum of £7 far sooner . The number of people on the national minimum wage has doubled since it was introduced 15 years ago and is now the pay rate for one in 20 workers , according to the Resolution Foundation think tank . Around 1.2 million employees earn the legal minimum wage compared with just over 600,000 in 1999 . A further 1.3m workers are clustered close to the minimum wage - earning within 50p of the minimum level . A series of below-inflation increases over recent years had meant the real-terms value of the wage had stalled . John Cridland , CBI Director-General , said : ‘ It ’ s disappointing that the Government has rejected the Low Pay Commission ’ s recommendation on the apprentice rate . ‘ The national minimum wage has been one of the most successful policies of recent years thanks to the independence of the commission – its politicisation is worrying. ’ Chuka Umunna , Labour ’ s shadow business secretary , said : ‘ This 20p rise falls far short of the £7 minimum wage which George Osborne promised over a year ago . Ministers have misled working families who have been left worse off . Where under David Cameron we ’ ve seen the value of the minimum wage eroded , we need a recovery for working people . ‘ Only Labour has set a more ambitious target for the minimum wage which would see a rise to £8 by 2020 , restoring the link between hard work and pay . We would also act to ensure the national minimum wage is properly enforced where a Tory-led government has failed to get to grips with non-payment . 'Currently 15 per cent of apprentices are not being paid the legal minimum , rising to almost a quarter for 16- to 18-year-olds . ’
David Cameron set to announce that the minimum wage will rise to £6.70 . This 3 % rise is the biggest real-terms increase since the financial crisis . Rate for apprentices will go up by a fifth – the largest increase on record . Minimum wage for almost a quarter to 17-year-olds will go up by 2 % to £3.87 per hour .