David Cameron said previous cuts to the economy means the government can now afford to increase the minimum wage and help "hardworking people."
The Prime Minister said: "Our long-term economic plan is securing Britain's future and helping hardworking people.
Posting on social networks, he said: "Because of the difficult decisions we've taken to fix the economy, we believe we can now afford to increase the minimum wage - putting more money in people's pockets and helping them provide for their families.
"We are doing all we can to make hardworking families financially secure - cutting income tax for 25 million people, freezing fuel duty and keeping mortgage rates low."
The Chancellor has said he is in favour of a rise in the minimum wage above the rate of inflation in an apparent turnaround.
Chancellor George Osborne has said that the country can afford an above-inflation increase in the national minimum wage ahead of elections.