In October 2014, the minimum wage could rise to £7 if the chancellor's plans announced today are enacted.

The national minimum wage was last increased in October 2013 but the rise wasn't consistent for everyone. This is what it currently looks like:

• adult rate ↑12p to £6.31 an hour

• rate for 18-20 year olds ↑5p to £5.03 an hour

• rate for 16-17 year olds ↑4p to £3.72 an hour

• apprentice rate ↑3p to £2.68 an hour

But is that keeping up with inflation? And how does the UK compare to other countries?

Historic data

A key policy for Labour in the 1997 election and a key piece of legislation in 1998, the national minimum wage finally came into force on 1st April 1999. Back then, it was just £3.60 per hour for adult workers over the age of 22 and £3.00 for those aged 18-22.

Although it's true that the minimum wage goes up each year, groups like the Resolution Foundation claim that is misleading because it doesn't take into account changes in the cost of living.

When you take into account inflation (there are two slightly different measures - RPI and CPI) what first appears to be a steady climb in the minimum wage now looks different.

The Resolution Foundation calculate that this leaves the minimum wage £1,010 lower a year than it was in 2008. That matters because around 1 million adult workers in Britain are paid the minimum wage, while twice that number earn within 50 pence of the minimum wage.

Whichever value you use, the national minimum wage has fallen steadily since 2008 and wasn't set to recover to its former levels until 2017 at the earliest.

The proposed new £7 national minimum wage would bring that date forward by three years at least.

Below minimum wage

Each year, the government also looks at average hourly wages for all groups - including those that are paid below the minimum. Figures from February 2013 show that 0.9% of people working full-time and 1.7% of those working part-time are paid less than the minimum wage.

Country comparison

Australia's minimum wage appears extremely generous at £10.29, and Portugal's seems extremely frugal at just £2.24 per hour. Although when you take into account the cost of living in different countries, Australia slips down to £8.58 per hour and Portugal creeps up to £3.07. Whichever way you look at it though, the UK comes 8th out of 13 countries that were looked at.

Age also makes a difference though. In places like Spain, Canada and New Zealand, workers as young as 16 are entitled to the basic rate - while in the Netherlands they have to wait until they're 23 and in Greece it's 25.

Get the numbers

• Download the full spreadsheet