Labour has revealed the full scale of the cost of living crisis under David Cameron. Analysis of historical figures from the Office for National Statistics shows that David Cameron has been in Downing Street for 36 months of falling real wages – more than any Prime Minister on record. And no Prime Minister has seen so many consecutive months of falling real wages.
Prices have risen faster than wages in all but one month of David Cameron’s premiership – and that was in April 2013 when he cut taxes for millionaires and bank bonuses soared. No other Prime Minister since records began comes close to the disaster for family living standards David Cameron has overseen.
Working people are today an average of £1,350 worse off a year in real terms since David Cameron entered Downing Street. And official forecasts show just how much working people are set to be worse off after five years of this Conservative-led Government.
Analysis of Office for Budget Responsibility forecasts by the House of Commons Library shows that, after inflation, wages are forecast to be £1,520 lower in 2015 than in 2010. This means that working people will, on average, have lost a total of £6,660 in real terms while David Cameron has been Prime Minister.
Research commissioned by the Labour Party from the House of Commons Library also shows that since 2010 wages have fallen in real terms in every region and nation of the UK, with Yorkshire & the Humber, Wales, the North West and the South West seeing the biggest percentage falls.
And over the last three years since this Government came to office prices have risen faster in the UK than in any other G7 country and no other G7 country has seen workers’ incomes in real terms fall by as much as the UK.
Chris Leslie MP, Labour’s Shadow Financial Secretary to the Treasury, said:
“David Cameron will go down in history as a disastrous Prime Minister for people’s living standards. He is totally out of touch, his economic policies have failed and the result is working families are massively out of pocket.”
“By 2015, official forecasts show working people will have lost an average of £6,660 under five years of the Tories. Yet millionaires have got a huge tax cut from this Government.”
Andrew Gwynne MP said:
“Far from never having it so good, many working people in Denton and Reddish have never had it so bad. Prices have risen faster than wages in 36 out of the 37 months since David Cameron has been in Downing Street. This is the worst performance of any Prime Minister on record.”
“Labour would help middle and low income families right now, including a lower 10p starting rate of tax, action to tackle soaring energy bills and protecting tax credits for working families by reversing the tax cut for millionaires.”