David Cameron's enterprise adviser has backed Labour's assertion that there is a "cost of living crisis" in Britain.
Tory peer Lord Young claimed people have always struggled with rising living costs and said he hoped wages will soon rise ahead of inflation.
The former Cabinet minister's comments will give succour to Labour, with the party making living standards and falling real wages central in their criticism of the coalition Government.
The peer, who served in Margaret Thatcher's Cabinet, made the comments as he set out his plans to encourage primary school children to be more entrepreneurial.
He told Sky News's Murnaghan programme: "The cost of living crisis for some people has always been with us, and you mustn't underestimate that and I certainly don't and I hope soon we'll see wages going up ahead of inflation."
Earlier, he told the programme: "Of course there is a cost of living crisis. I can remember a cost of living crisis for most of my years and I have lived quite a lot of them.
"If you are starting off a new business you have to look at a market opportunity, you have to go out and take it, and that's really what my education changes are doing, with the backing of many in the education world, about producing young people who are prepared to see an opportunity and take it.
"Because in the decades to come people will be changing their job every few years, working for different people, working for themselves, it's a very different world, and all of that's been created by the internet."