The adult rate of the minimum wage will increase 3%, from £6.50 to £6.70, in October if recommendations to the government by the Low Pay Commission (LPC) are accepted.

The LPC is an independent body which advises the government on the appropriate rate for the minimum wage for adults, young people and apprentices.

It meets every year to formulate figures which it passes to ministers who almost always accept the suggested rates.

The LPC recommends a 3.3% increase from £5.13 to £5.30 for 18 to 20 year-olds and a 2.2% increase for 16 and 17 year-olds.

Business groups said the suggested increases struck a balance between the need for wage growth and continued uncertainty over the future of the economy.

Katja Hall, CBI deputy director-general, said: “The LPC has struck a careful balance. As the economic recovery cements, the Commission has reconciled a desire to reflect this in pay packets while recognising that productivity growth remains weak.

“We welcome the commitment to review next year’s rise if the improved business environment doesn’t materialise.

“The National Minimum Wage has been one of the most successful policies of our time thanks to the independent recommendations of the Commission, helping many low-paid workers without damaging their job prospects.

She added: “Any artificial increase due to political expediency will help no-one and ultimately damage one of the most successful government policies in recent years.”

Separately, the government published data on 70 businesses that have been caught failing to pay minimum wage rates.

The Trades Union Congress (TUC) said there should be more prosecutions and bigger fines for employers that break the law.

“We need more prosecutions and higher fines. Cheating bosses who fleece their workers out of their hard earned pay must end up in court,” said TUC general secretary Frances O’Grady.

“And there are still lots of under-paying employers who are getting away with it. More inspectors are needed so we can make sure that every single minimum wage cheat is caught.”