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Raising NMW considered after 10p tax row

The Government is considering plans to raise the minimum wage for 18- to 21-year-olds, after it came under fire from its own MPs for scrapping the 10p tax rate.

The Treasury Select Committee said last week it would hold an inquiryinto the effect of the Budget measures on low-income families.

Chancellor Alistair Darling said he would look at ways the minimum wage,tax credits and the winter fuel allowance could compensate poorhouseholds who are affected by the abolition of the lower rate of incometax.

The Government said it would outline a compensation package by thisautumn's pre-budget report.

On Monday MPs were set to debate the measures as MPs said they neededmore clarity about the concessions on offer.

Conservative leader David Cameron told the BBC, 'We are putting downamendments to try to stop the Government in its tracks and make it givesome real promises about how it is going to help these people, or itshouldn't be going ahead with the abolition of the 10p band.'