David Cameron's government of millionaires sank to new depths yesterday with a record plunge in public-sector wages and more jobseekers than ever forced into part-time work.

For the first time since records began, average earnings in the public sector registered negative growth - falling 0.5 per cent over the past year.

The retail price index rose by 3.2 per cent over the same period, hitting workers with a nasty cut in the real value of their income.