Miliband: Families face a cost of living crisis

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."

Miliband added that even when the economy recovers the "cost of living crisis" will remain because of "squeezed wages, squeezed prospects, squeezed aspirations".

He welcomed government proposals that will see a rise in the threshold for personal tax allowance but said this is likely to be cancelled out by other measures. "Let me be clear. If they [the coalition] can offer some relief for hard-working middle and low earners in this way then Labour will support it," he said. "But I'm not going to fall – and the country isn't either – for a big tax con. Funding rises in the personal allowance through tax rises elsewhere like VAT and cuts to family tax credits and child benefit isn't making the tax system fairer, it's giving with one hand and taking away with the other."