In advance of last week’s Autumn Statement, Rushanara Ali MP challenged the Prime Minister to explain why wages for workers in the UK have remained stubbornly low and stagnant on this Government’s watch.

Citing Conservative Party promises made at the last General Election, Rushanara said:

“The 2010 Conservative manifesto promised an economy in which not just our standard of living, but everyone’s quality of life would rise steadily and sustainably. Why in the last year have wages grown by the smallest amount since records began?”

Newly elected on to the Treasury Select Committee, Rushanara highlighted the importance of a return to growth in wages to people across the UK at Prime Minister’s Questions. Figures on wages released this week by the independent Office for Budget Responsibility have highlighted the following:

• Prices have risen faster than wages for 52 of the 53 months for which David Cameron has been in Downing Street.
• Expectations of future increases in wages have been revised down for the next three years.
• Working people are today on average over £1,600 a year worse off since 2010.

Commenting on the Government’s failure to tackle low and stagnant pay, Rushanara said:

“It’s now crystal clear that this Government has failed to honour the promises on the economy it made in 2010. It has failed to balance the books and failed to produce enough sustainable and well-paid jobs for people across the UK – people are continuing to feel the effects of David Cameron’s cost-of-living crisis.”

“Put simply, this Government has failed to produce a recovery which all. Residents of Bethnal Green and Bow have seen their wages plummet in real terms since 2010, but David Cameron has proved he has no credible plan to strengthen people’s pay packets. Only a Labour Government will strengthen the minimum wage, freeze people’s energy bills, and reverse the £3 billion tax cut David Cameron gifted to the top 1% of earners.”