The national minimum wage is to increase by 19p an hour to £6.50 from October. The Government has said it had accepted recommendations from the Low Pay Commission, including plans for bigger increases in future than in recent years.
Former Lloyds TSB boss Sir Victor Blank told ITV News the 19p increase to the minimum wage is a "small step but very positive."
He said: "[It's] terrific that it's gone up and so it should. One of the biggest problems I think we have is the growing division between the levels of pay of senior executives and the average level of pay.
"If you look at the figures over the last 15 years, they've just grown apart massively and I think it's quite worrisome and I think it's quite wrong."