But ministers also know that at least some of the 4.89 million earning less than a living wage are people who have recently "priced themselves into work" to avoid unemployment.

BBC: Living wage: Is there such a thing as a free pay rise?

Additionally, the increasing demand for lower-priced PCs from emerging markets could work against Intel as its processors are priced at a considerable premium over competitors.

FORBES: A Review Of Why Intel Is Worth $33

But when it comes to contract terms, the aggressively-priced proposal that won the work for Oshkosh two years ago has now come back to haunt it.

FORBES: Oshkosh Proof That Pentagon Can Make, Or Break, A Company