Ed Miliband has said that the concerns of Ukip supporters and other right-wing groups are mostly “based on reality” rather than prejudice.

The Labour leader had been asked whether he was “concerned” about Nigel Farage’s party and the rise of Eurosceptic and anti-immigration groups in the UK. He was speaking to young voters during a question and answer session on Monday at Facebook's London offices called Stand Up Be Counted: Ask The Leaders.

“I’m incredibly proud of the fact we’re an open, tolerant country. I’m the son of immigrants, my parents came here as refugees from the Nazis and I think that is one of the great things about Britain,” Mr Miliband said.

“We've got to champion openness and our diversity but we've got to make it work.”

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The Prime Ministerial hopeful then offered the crowd of young voters an example of where he thought the system “doesn't work”.

“You get a situation where people are being brought here, being paid less than the minimum wage, or 15 people being in a house,” he said.

“That exploits migrant workers but it also undercuts wages.

“I think most of the time, people’s concerns aren't based on prejudice, they’re based on reality.

“When people see that happening, they say ‘hang on a minute, that’s not fair, we've got to do something about it.”

Nigel Farage has used concerns over migration as one of his party's key hooks for disgruntled voters (Getty Images)

Mr Miliband suggested that wages were being “driven down” by migrant workers but did not outline a strategy for tackling the issue.

His comments came after a leaflet was sent out on Labour's "tough new approach to immigration".

“Let’s have the openness and tolerance that is brilliant for Britain,” he added. “But let’s also make sure we make that vision of that open, tolerant society that works for everybody and not just some people.”

The session was part of Sky’s “Stand Up and Be Counted: Ask the Leaders” pre-election event, where David Cameron and Nick Clegg also appeared.