HARD working families are still being misled by the Government, despite a rise in the national minimum wage, it has been claimed.

The Government says the lowest pay rate will rise by 20p an hour to £6.70, with more than 1.4 million workers expected to benefit from the three per cent hike.

However, critics say Chancellor George Osborne has reneged on plans to lift the minimum wage to £7.

But Prime Minister David Cameron has rejected the criticism, saying it will give families more security.

The rise will take place from October, with the hourly rate for 18 to 20-year-olds going up from £5.13 to £5.30, and by 8p to £3.87 for 16 and 17-year-olds.

The statutory minimum for apprentices will jump 20 per cent by 57p to £3.30.

Mr Cameron said: "At the heart of our long-term economic plan for Britain is a simple idea; that those who put in, should get out, that hard work is really rewarded, that the benefits of recovery are truly national.

"That's what this announcement is all about, saying to hardworking taxpayers, this is a Government that is on your side.

"It will mean more financial security for Britain's families and a better future for our country."

However, Shadow Business Secretary, Chuka Umunna, claimed the Government has broken promises.

He added: "This 20p rise falls far short of the £7 minimum wage George Osborne promised over a year ago.

"Ministers have misled working families who have been left worse off.

"Where under David Cameron we've seen the value of the minimum wage eroded, we need a recovery for working people."

Frances O'Grady, general secretary of the TUC, also said the increase was not enough.

She added: "For the low-paid to get a fair share of the recovery, this was a year in which we could have had a much bolder increase in the minimum wage.

"With one in five workers getting less than a living wage, this is nowhere near enough to end in-work poverty.

"Britain's minimum-wage workers should be very fearful of the billions of pounds of cuts to Government help for the low-paid that the Chancellor is planning if re-elected."