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George Osborne backs minimum wage rise to £7 per hour

The minimum wage could rise to £7 an hour by 2015, Chancellor George Osborne has told the BBC. Osborne said the "economy can now afford" an above-inflation rise.

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Duncan Smith backs 'bold move' on minimum wage

Work and Pensions Secretary Iain Duncan Smith has welcomed George Osborne's "bold move" of backing an increase in the minimum wage.

Work and Pensions Secretary Iain Duncan Smith. Credit: Ian Nicholson/PA Wire

"It shows that at the heart of all our reforms this Government is concerned to improve the quality of life for the poorest in society," he said.

"The commitment to a higher national minimum wage is all part of ensuring that the economic recovery delivers for people who want to work hard and play by the rules."

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