Labour leader Ed Miliband has proposed changes to minimum wage which would link it to average earnings in order to tackle low pay in the UK.

The Conservatives and Liberal Democrats have also said they want the minimum wage to increase.

Labour is looking to increase the national minimum wage to move it closer to average hourly earnings.

Katja Hall, Confederation of British Industry (CBI) deputy director-general, said: "The national minimum wage has been a success in raising wages for the lowest paid because it's been left to the Low Pay Commission, not politicians, to set the rate. A government proposed target would undermine the commission’s independence.

"The simplicity of the national minimum wage is one of its strengths, but ultimately pay must reflect productivity. Every business should pay the national minimum wage, so we support better enforcement.

"The living wage takes no account of a businesses' ability to pay, particularly smaller firms. That's why it should remain voluntary, and reporting on it therefore isn't appropriate.”

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