The TUC is to lobby the government for two more increases in the minimum wage in 2005 and 2006, to £5.35 an hour from next October and "towards £6" the following year.

However the target, agreed at a meeting of the TUC's general council yesterday, is lower than some union leaders had hoped.

Nevertheless, the call was criticised by business leaders.

"The TUC has chosen a poor time to suggest throwing caution to the wind when so many firms are under pressure because of rising costs," said Anthony Thompson, head of employment policy at the CBI.

"The last two increases mean the wage has affected more firms than ever before.  We have got to proceed cautiously from there if the wage is not to do more harm than good."