LABOUR’S pledge to “significantly” boost pay for Britain’s five million low-paid workers won backing yesterday from trade unions and anti-poverty campaigners. 

Leader Ed Miliband said decent wages not higher welfare spending will be the “basic principle” of a Labour government if they kick the Con-Dems out next year at an event launching the results of Labour’s low-pay commission.

He promised to link the minimum rate to higher earnings — but he remained tight-lipped on how much Labour would boost pay and promised to consult business before any rise.

The TUC also backed a proposal to use the £138 billion of taxpayer’s cash spent in the private sector to push the number of businesses paying a living wage. 

General secretary Frances O’Grady said former KPMG chief executive Alan Buckle’s report showed that “fair pay goes hand in hand with running a successful economy.”

“The minimum wage grew from a union campaign to a landmark achievement of the last Labour government,” she said. 

“Labour should make this battle against low pay a top priority.”

And Child Poverty Action Group chief executive Alison Garnham said the “inconvenient truth” is that the Tories low-wage economy is locking families into poverty. 

“Tackling the Britain’s low pay problem will reduce the burden on tax credits and housing benefits, freeing up resources to target back to those who need most help.”