Rachel Reeves: Wages are £1,500 lower under Cameron’s government

Wages are £1,500 lower on average than they were under Labour, according to Shadow Chief Secretary to the Treasury Rachel Reeves. In her first speech after returning from maternity leave, the shadow cabinet minister has attacked the government’s track record on youth unemployment and their failure to address the cost of living crisis. Speaking at the Resolution Foundation this morning, Rachel Reeves said:

“Wages are now on average £1,500 down since David Cameron became Prime Minister. Families are taking the hit from changes to taxes and benefits which the Institute for Fiscal Studies says has cost families, on average, £891 this year alone.”

The economy has seen some growth in the past two quarters, but Rachel argues the positive figures mask the true impact of the recession on many families’ budgets. This morning she explained:

“It’s an economy that, for far too many people, seems only to offer work that is insecure, poorly paid, and in the worst cases simply exploitative.”

Her speech echoes Shadow Chancellor Ed Balls’ view that “prices are still rising faster than wages”. Writing in the Guardian today, Ed says families are feeling severe financial strain:

“Two quarters of positive growth does not begin to repair the damage from three years of flatlining. The talk of economic recovery rings hollow for ordinary families across the country, who are still seeing their living standards fall […] we need a recovery that benefits everyone.”

Amid positive signs of a fragile economic recovery, some commentators think the Labour shadow cabinet are changing tack and turning to talk about the ‘cost of living crisis’ instead of attacking George Osborne’s ‘flatlining economy’.