- 5 updates
The Treasury has defended its economic policies and says it appreciates times are tough for families.
It comes as a response to new figures suggesting a sharp fall in UK workers' wages.
The general secretary of the GMB union Paul Kenny has blamed the Government after figures released by the House of Commons showed British workers' wages have suffered one of the sharpest falls in the European Union.
Mr Kenny said: "The Government is directly responsible for this unprecedented fall in the real value of wages in the three years since the election.
"Employers paying low wages get taxpayer subsidies in the form of tax credits to assemble a workforce for them to make decent profit margins."
Britain is fourth for the sharpest fall in wages in Europe - only Greece, Portugal and the Netherlands have suffered larger declines.
House of Commons library figures show there has been a 5.5% reduction in average hourly wages since mid-2010. It means British workers have felt the squeeze more than those in countries which have been rocked by the eurozone crisis.
Meanwhile, Bulgaria had the biggest increase of hourly wages at 13.2%. Also, Germany saw a 2.7% rise.
David Cameron and George Osborne's economic policies have "badly failed over the last three years and working people are paying a heavy price," the shadow treasury minister has said.
The criticism from Cathy Jamieson comes in light of new figures released by the House of Commons showing that British workers' wages have suffered one of the sharpest falls in the European Union.
The Kilmarnock & Loudoun MP said: "Despite out of touch claims by ministers, life is getting harder for ordinary families as prices continue rising faster than wages.
"Ministers keep talking about the global race, but when it comes to living standards it's clear we're losing."
The value of UK workers' wages has suffered one of the sharpest falls in the European Union, House of Commons library figures have shown.
The 5.5% reduction in average hourly wages since mid-2010, adjusted for inflation, means British workers have felt the squeeze more than those in countries which have been rocked by the eurozone crisis.
Only the Greeks, Portuguese and Dutch have had a steeper decline, the analysis showed, while in Germany hourly wages rose by 2.7% over the same period and in France there was a 0.4% increase.
Across the EU as a whole the average fall in wages, adjusted for the European Central Bank' s harmonised index of consumer prices, was -0.7% and in the eurozone area it was -0.1%.