Ed Balls MP, Labour’s Shadow Chancellor, responding to the Annual Survey of Hours and Earnings, said:

“Out-of-touch Ministers claim the economy is fixed, but these figures show wages continuing to fall. Average earnings fell by 1.6 per cent in real terms last year – a bigger fall than in the previous two years.

“Working people are worse off under David Cameron’s government and millions face a further hit if the Tories win the election. David Cameron and George Osborne have promised to cut tax credits again while keeping a £3 billion a year tax cut for the top one per cent of earners.

“We need a recovery for the many, not just a few at the top. Labour’s economic plan will tackle the cost-of-living crisis and earn our way to higher living standards for all. Our plan will raise the minimum wage, boost apprenticeships, get 200,000 new homes built a year and expand free childcare for working parents.

“And we will balance the books in the next Parliament, but do so in a fairer way - starting by reversing David Cameron’s tax cut for millionaires.”