LOW pay campaigners have welcomed a rise in the minimum wage -- but they still do not think it is enough to live on.

The Government has announced that the figure will go up from £4.20 an hour to £4.50 in October -- a rise of about seven per cent. The rate for 18 to 21-year-olds will rise from £3.60 to £3.80.

It is estimated that between 1.3 and 1.6 million people in the UK will benefit from the rise.

The Greater Manchester Low Pay Unit, which covers the Bolton area, has welcomed the rise.

But researcher Claire Faichnie said: "We are still concerned that £4.50 is very low and does not give workers a living wage."

When the minimum wage was introduced in April 1999, there was speculation by employers' organisations that it would lead to widespread job losses -- which has not happened, according to observers.

Research by the Greater Manchester Low Pay Unit last April found that more than half of the positions advertised at Bolton's job centres already paid more than £4.50 an hour -- and 72 per cent were paying more than £4.20. Claire Faichnie said: "Most employers are paying above the minimum and they can afford it."

She added that enforcement of the minimum wage by the Inland Revenue had been "very effective" in reducing the number of employers who sought to pay less.

Anyone who thinks they are not being paid the minimum can call 0845 6000 678 or visit a website -- www.tiger. gov.uk.

Trade and Industry Secretary Patricia Hewitt has provisionally accepted a Low Pay Commission recommendation for further increases in October next year, which would see the adult hourly rates go up to £4.85 and the youth rate to £4.10.

The figures will be reviewed by the Commission next year. The Government has also asked the Commission to look at the possibility of a minimum wage rate for 16 and 17-year-olds.

Digby Jones, the CBI's Director-General, described the new £4.50 rate as a "sensible balance between prudence and boldness".

But he added: "Nobody should forget that our most vulnerable companies will be paying the bill and that many will find this rise difficult to afford."

Sir Bill Connor, leader of shopworkers' union USDAW, said the rise was a significant step in the battle against low pay.