article_snippet: The IFS said Labour’s claim was based on figures from the Annual Survey of Hours and Earnings, covering the period 2010-2014.
article_snippet: Economist Robert Joyce said it was true that figures from the Annual Survey of Hours and Earnings show average earnings fell during the period 2010-2014.
article_snippet: And Economist Robert Joyce warned the Labour statistics give only a partial view of total household income.
article_snippet: figures from the Annual Survey of Hours and Earnings do not include pensions, which have received a substantial boost.
article_snippet: Because figures from the Annual Survey of Hours and Earnings are gross figures figures from the Annual Survey of Hours and Earnings also do not include the impact of tax changes.
article_snippet: And figures from the Annual Survey of Hours and Earnings do not reflect that fact that employment is up by almost two million – meaning many people who previously had no income are now earning.
article_snippet: cost-of-living crisis’ – is based solely on gross earnings, not net incomes.
article_snippet: This means it takes no account of any benefits a family receive or, crucially, the Coalition’s decision to raise the threshold for paying income tax to £10,600.
article_snippet: To reach the figure of £1,600, Labour compares a person’s gross income with the Retail Price Index measure of inflation, which is discredited and has been replaced in the national accounts by the Consumer Price Index, which produces a significantly lower annual rate.
article_snippet: Also, Labour’s calculation runs only to April 2014.
article_snippet: The Office for National Statistics includes these organisations in the calculation – which compares all financial incomings with outgoings – because these organisations in the calculation ‘are financed by households and these organisations in the calculation sole purpose is to serve households’.
article_snippet: the figures are based on forecasts by the independent Office for Budget Responsibility up to the end of 2015.