Patricia Hewitt is expected announce a 30 pence-an-hour rise in the minimum wage.

The minimum wage for workers over 21 is expected to rise by 7.1 per cent in October from £4.20 to £4.50 an hour - in line with recommendations from the Low Pay Commission.

Workers aged from 18 to 21 will see their minimum rate go up 20 pence to £3.80 an hour, provisionally rising to £4.10 in 2004.