United Kingdom Independence Party (UKIP) candidate Douglas Carswell (L) and UKIP leader Nigel Farage
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Farage says UKIP could hold balance of power in 2015

Nigel Farage has predicted UKIP could hold the balance of power following the next general election after his party gained its first elected MP.

The UKIP leader said his party had momentum after Douglas Carswell won the Clacton by-election by 12,404 votes.

In Friday's other by-election result, Labour held on to Heywood and Middleton but UKIP slashed its majority to 617.

David Cameron said voting UKIP helped Labour, while Ed Miliband pledged no "complacency" from his party.

The BBC's James Landale and Carole Walker report.

Go to next video: Carswell becomes first elected UKIP MP