Labour Party Warns 'Generation Rent' Wages Have Dropped by 10% Under Tories

Workers under 30-years-old have seen their real weekly wages drop by around 10% under the Coalition Government, according to the Labour Party.

Ed Miliband's party also argued that the pay packets of 18 to 21-year-olds have dropped by 10.3% since 2010.

In addition, 22 to 29-year-olds saw their weekly earnings drop by 9.4% over the same period.

The Labour Party also argued that since 2010 nearly half-a-million more under-35s are living with their parents – a rise of 16%.

Chris Leslie, Labour's shadow chief secretary to the Treasury speaking at an event hosted by the Intergenerational Foundation, said: "For those developing their careers, for the so-called 'Generation Rent' at the start of their working lives, currently there is an increasingly heavy burden and a distinct lack of coordination in government.

"After all, this is the generation upon whose shoulders the future prosperity of our country depends.

"There are fifteen million younger people under the age of 35 in this country and in nine months they face a choice about how the economy and government will reflect their ambitions and aspirations."

Leslie explained that a Labour government would set up a group to investigate the impact of its policies on the under-35s.

The speech comes after Miliband announced that the Labour Party would introduce a 'Youth Allowance' if it regained power after the 2015 General Election.

The policy, which is expected to cover 100,000 people, means that youngsters will be given a "Youth Allowance" of £57 ($97, €71) per week if they agree to take vocational training equivalent to AS level.

The plan also stipulates that prospective claimants with a family income of more than £42,000 a year will not be entitled to the new benefit.

The Treasury had not responded to a request for comment at the time of publication.