THE minimum wage rose to more than £5 per hour from Saturday - guaranteeing a pay increase for 1.3 million low paid workers across the country.

The adult rate of the national minimum wage increased from £4.85 to £5.05 per hour, while the youth rate - paid to 18-21 year-olds - rose from £4.10 per hour to £4.25.

The rate for 16 and 17 year old workers, introduced last year, will remain at £3.00 an hour, to enable it to be fully reviewed by the Low Pay Commission in its annual Report to Government in February 2006.

Secretary of State for Trade and Industry Alan Johnson said: "Since the minimum wage came into force in 1999, over a million low paid workers have benefited each year.

"This means we have protected some of our most vulnerable members of society from exploitative employers. This increase will make a real difference to the lives of the lowest paid members of our workforce."

The minimum wage was launched in 1999 with a main rate of £3.60 per hour. Since then an estimated one million workers per year have benefited.