Using figures from the Office of National Statistics (ONS) and projections from the Office of Budget Responsibility (OBR), Labour is accusing prime minister David Cameron of having presided over a record 35 consecutive months of falling real wages.
Labour claims workers will be £6,600 poorer by the time of the next election, with incomes £1,520 lower in real terms compared to 2010.
Apart from Cameron, James Callaghan is the only prime minister on record to have overseen more than a year of constantly falling real wages, Labour's analysis of ONS figures revealed.
Out of touch
Chris Leslie, shadow financial secretary to the Treasury, said Cameron would go down as a "disastrous" prime minister in terms of living standards.
"He is totally out of touch, his economic policies have failed and the result is working families are massively out of pocket," said Leslie.
"By 2015, official forecasts show working people will have lost an average of £6,660 under five years of the Tories. Yet millionaires have got a huge tax cut from this Government.
"Far from never having it so good, many working people have never had it so bad. Prices have risen faster than wages in 36 out of the 37 months since David Cameron has been in Downing Street. This is the worst performance of any prime minister on record."
Leslie said a Labour Government would help middle and low-income families.
"We would introduce a lower 10p starting rate of tax, action to tackle soaring energy bills and protecting tax credits for working families by reversing the tax cut for millionaires," he added.
The coalition has blamed Labour for the poor economy and said they are the reason the cost of living is so high.
Conservative business minister Matthew Hancock said: "Today's squeeze on living standards is a direct result of Labour's disastrous economic policy that got us into this mess."
