George Osborne wants above-inflation minimum wage rise
16 January 2014 Last updated at 17:28 GMT
The Chancellor has said he wants to see an above-inflation increase in the minimum wage.
He told the BBC the "economy can now afford" to raise the rate, currently set at £6.31 an hour for people over the age of 21.
The value of the minimum wage, paid to an estimated 1.35 million people, has fallen in real terms since the financial crisis of 2008. The current rate of inflation is 2%.
In an interview with the BBC's Nick Robinson, Mr Osborne stressed that the decision was not his but that of the Low Pay Commission.