However, an estimated 170,000 people in the UK don't get paid the minimum amount for their work. But they may still be better off than their US cousins, where the majority of states abide by the federal minimum wage - currently $5.15 an hour (around £2.73).

UK Revenue and Customs staff have recovered more than £1.3m for underpaid workers since April - according to a BBC news report.

TUC leader Brendan Barber said employers who broke the law should be "named and shamed".

He said they should also "face tougher penalties, including being forced to give back pay with interest to their staff who've been cheated of their wages".

Employment relations minister Jim Fitzpatrick said the government would crack down on employers who mistreated vulnerable workers.

"Millions of working people have directly benefited from the decent minimum standards we have put in place, like the minimum wage.

"I want everyone to be aware of the rights they have in the workplace, as a step towards ending unfair treatment and discrimination."

The minimum rate for workers aged between 18 and 21 has increased by 20 pence to £4.45, while 16 to 17-year-olds will now receive £3.30, a rise of thirty pence.