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Students working part-time jobs to support their studies could be relieved to hear that the government plans to review the minimum wage.

The announcement has been blasted by businesses but could well see an increase in wages for students working in retail and call centre industries, the Recruiter reported.

Jon Taylor, head of employment at EMW Law, told the news provider: "It is a real shame that it may be employers that end up footing the bill for the government’s u-turn via yet another rise in the minimum wage.

"This is a highly contentious proposal which may well cause yet another political storm."

Labour backbenchers had complained about the prime minister's decision to abolish the ten pence tax bracket and Gordon Brown made a series of measures in response to threats of a rebellion.

There had been calls from his party members for £1 billion of compensation to those hit hardest by the removal of the tax.

Frank Field, leader of the rebels, told the publication: "No one in their right mind wants to vote against the government, but this is in a different category to anything we have faced over the past 11 years in that the golden thread that ties us together is to protect the poorest."

The minimum wage was first introduced in the UK in 1999 to protect low income workers against exploitation.

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