London households could be losing £3,000 each year as wages in the capital fall behind inflation levels.

Figures released by the Office for National Statistics (ONS) have shown that the average household income in London rose from £32,598 in 2010 to £36,735 last year.

But according to the Bank of England’s (BoE) inflation calculator this is lagging behind what the average Londoner should be taking home each year

Taking inflation into consideration the BoE said the average London household should be taking home over £39,000 per year.

This means Londoners are losing nearly £3,000 income every year.

Labour’s London Assembly spokesperson for the economy, Andrew Dismore said: “With wages unable to keep pace with the ever-increasing cost of living, Londoners’ pockets are taking the hit.

“The Government shamelessly hide behind employment figures that, on closer inspection, reveal an increase in zero-hour contracts and precarious gig economy jobs. Meanwhile, even those in stable employment are buckling under the pressure of sky high rents and rising food prices.

“It is baffling that the Government insist on presiding over policies that have led to this decline in living standards.

“They should act now to abandon their failed programme of austerity, properly invest in public services and local authorities, and stop the country hurtling towards a hard Brexit in which we all miss out.”

Last year the Mayor of London, Sadiq Khan announced the London Living Wage would be increasing from £9.75 per hour to £10.20 but Brexit uncertainty is already expected to add to the economic strain in London.

Mark Boleat, ex-chairman of the City of London Corporation recently projected a loss of £75,000 jobs in the London’s financial sector.