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Miliband: Families face a cost of living crisis

Labour leader Ed Miliband has warned of a crisis among low- and middle-income families as a result of government austerity measures including the rise in VAT and the reductions in benefits.

Addressing delegates at an event hosted by think tank the Resolution Foundation, Miliband said families with children were likely to feel the greatest impact of the cuts.

He cited the rise in VAT, the reduction to the childcare element of working tax credit, the end of child benefit and static and low wages as factors likely to contribute to greater hardship for families.

"These changes fail a fundamental fairness test: that families with children should be protected, not unfairly targeted," he said. "Couples with children will be hit twice as hard by cuts to services. Taken together I believe these changes will mean a cost of living crisis for ordinary families in Britain which will have a deep impact for years to come."

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