More needs to be done to tackle the “disgraceful cost of living crisis” in Haringey, the MP for Tottenham says.

David Lammy called on the Government and the Mayor of London to take action to bring down travel costs and high rents across the capital.

He made the statements in reaction to figures from the Office of National Statistics which showed that average earnings in Haringey had decreased by 26.8 per cent since 2008 – the third biggest drop in the UK.

Mr Lammy claimed he was deeply disappointed but not surprised to hear the news.

He said: “Under the current government millions of people are facing a cost of living crisis, which is particularly bad in London due to high rents and travel costs.

“The Government and the Mayor of London must give more attention to tackling the real problems facing so many families, and take action to cut living costs and invest in proper jobs and training, especially for young people.”

The Labour MP called the situation a “disgrace” and said he will keep fighting to promote the London Living Wage but also made a call to tackle “sky-high” rents.

He said: “We must consider introducing a cap on rents – like they have in New York - to stop housing costs soaring even higher than they already are.”

Mr Lammy added: “These are the areas that the Government and the Mayor need to be focusing on, and they need to be doing so as a matter of urgency.”

Despite average annual earnings going up from £26,137 in April 2008 to £27,174 in April 2013 the 17.8 per cent rise in inflation has meant real value earnings across the country have gone down by 13.8 per cent.

The worst hit borough in the country is Hammersmith & Fulham with average income down by 49.1 per cent.

It was followed by Camden, where earnings are down by 30.7 per cent.

The Haringey Trades Council, the local branch of the Trade Unions Congress, said 2014 must be the year everyone benefits from the recovery.

Keith Flett, the TUC secretary for Haringey, said: “Haringey in 2013 was a miserable place for many.

“We saw a significant rise in the use of food banks and the impact of the Government’s bedroom tax and universal benefit changes which are designed specifically to bash the poor in areas like Haringey.”

“2014 must be the year when everyone sees the benefits of a reviving economy in terms of improved wages and more jobs.”