More than a million workers will receive a pay rise from October this year after the UK government revealed that it has hiked the National Minimum Wage to £6.50 per hour.

The move comes after the Low Pay Commission's recommendation that the government should boost the rate, from its current level of £6.31 an hour, for employees over 21.

The increase, which represents an inflation beating 3% jump, will be welcome news for low-paid workers across the country.

"The recommendations I have accepted today mean that low-paid workers will enjoy the biggest cash increase in their take home pay since 2008," said the Business Secretary Vince Cable.

"This will benefit over one million workers on national minimum wage and marks the start of a welcome new phase in minimum wage policy."

The change also means that the minimum wage for those aged between 18-20 years old will increase to £5.13 per hour, while those aged either 16 or 17 will take home £3.79.

The news comes after the Office for National Statistics (ONS) revealed that the UK's CPI inflation rate is currently at 1.9% and total pay growth is lagging behind the cost of goods at 1.1%.