The head of the Confederation of British Industry (CBI), John Cridland, has accused firms of being too slow to pass on their burgeoning post-recession success onto their employees, keeping too many people in minimum wage jobs.

In a new year statement Mr Cridland will say that too many of the 240,000 companies represented by the CBI are failing to raise pay for their workers at a time when the GMB union is warning that the real value of national average earnings has fallen by 14% since the start of the recession in 2008.

In his annual message to business leaders , Mr Cridland will say: "The recovery is taking root and business leaders have a spring in their step compared to this time last year but this is no time to rest on our laurels.

“As the financial situation of many firms begins to turn a corner, one of the biggest challenges facing businesses is to deliver growth that will mean better pay and more opportunities for all their employees after a prolonged squeeze.

"Businesses must support employees in every part of the country to move up the career ladder, while also giving a helping hand to young people taking their first tentative steps into the world of work.”