Trade unions demanded a living wage for all workers yesterday after the government announced an overdue but derisory 3 per cent boost to the minimum wage.

The national minimum wage (NMW) is to increase by 19p an hour to £6.50 later this year.

Crowing Business Secretary Vince Cable said: "This will benefit over one million workers on national minimum wage and marks the start of a welcome new phase in minimum wage policy."