Labour claims workers are earning more in real terms but Tories say taxpayers are ‘worrying about how to pay their bills’.

Do you feel better off under Rachel Reeves and Sir Keir Starmer? (Image: Getty)

Labour claims that the average worker is earning over £500 more since last year’s general election have triggered a furious response, with Conservatives sayinging “everyone is working harder for less”.

Labour insists pay packets have gone up by more than £500 above inflation. It says average annual pay went up from £35,965 in June last year to £38,404 this October – a “real increase” of £516 when inflation is taken into account.

Labour’s claim this will be a “welcome relief” for “workers heading into the Christmas period” drew scorn from the Conservatives.

Shadow Business Secretary Andrew Griffith said: “Labour are costing families far more than any pay-rise they may have received. Everyone is working harder for less and with higher taxes, rising unemployment, and anaemic growth, Labour shouldn’t be asking for applause for their economic incompetence.

“This Christmas, millions of hardworking taxpayers will be worrying about how to pay their bills. Countless families will be cutting back on festivities and many others will have lost their job on the government’s watch.

“All Labour offer is a welfare splurge paid for by ordinary people.”

Chief Secretary to the Treasury James Murray (Image: Getty)

Labour points to the “fastest pace” of interest rate cuts in 17 years, saying this is “good news for families with mortgages and businesses with loans”.

James Murray, the Chief Secretary to the Treasury, said: “Putting more money in working people’s pockets is the priority for this Labour Government… We know there’s more to do. Next year our government is going to be focussed on delivering the fairer future we promised the British people.”