I'm the Squeezed Middle and I know who's doing the squeezing

Political leaders look on sadly but what are they really doing to change things?

It's not fun in the Squeezed Middle, trying to cope with Alarm Clock Britain as part of a Hard Working Family. But it's nice to know that our politicians really care about us. Care about us enough to think up slogans to patronise us, anyway.

So, here I am, back in full-time employment, though I've begun to realise why the Big Society isn't going to work. It's the same reason why so many working people aren't politically active. It's not so much apathy or class; it's just that doing actual hard work makes you tired. So tired that you can't be bothered to do anything other than fall asleep into a warm plate of food every evening, brushing the mouldy crumbs into your mouth for breakfast some hours later.

Work seems blissful after a time of unemployment. You start to become satisfied with less: just work in itself is a reward, let alone the money.

Obviously, given that you don't get a P45 straight away, it's the joys of emergency tax, but that's a small price to pay. I say "small price" but it's an enormous price to pay, if you're not getting paid that much in the first place, but that's beside the point: you get to look forward to money back at some point in the distant future, tucked away for a rainy day at 0 per cent interest. Lucky old you. No complaining, now.

I'm not complaining. I like working. I like work. I like money. I like being paid for doing something other than sitting around the house all day, even if, as it turns out, my annual salary is somewhat less than what I was earning in my first ever full-time job, 13 years ago.

Is that failure? Well, no: it's success just to have a job at all, nowadays. There are so many people who don't, and who have no reasonable short-term prospects of getting one, it seems churlish to put your hand up and ask if you could take home some half-decent cash as well.

But this is where we are, those of us who are in the Squeezed Middle, or well below the middle. Ed Miliband would like to help us. Nick Clegg would like to help us. David Cameron would like to help us. At least, I think they would. They say they would. They look at us, sadly, like you'd stare at a mangy old mongrel faithfully limping behind its owner to the vets that last time.

But in terms of actually doing something about us? Well, things aren't quite so clear cut.

I like the idea of tax cuts for the low paid. I have no problem with tax cuts -- if the right taxes get cut. Increasing the personal allowance is a fine and progressive thing to do, and is to be welcomed. But it's like chucking a cork to someone who's drowning and expecting them to say thank you. It might be something, but it's not going to solve any big problems.

The other tactic, of course, is to get those of us who are in work to hate those who aren't in work -- to set us against each other. The benefit cap is part of that strategy, to make those of us who are struggling to pay bills despise those of us who have some of our bills paid for us -- and it has the completely accidental side effect of kicking poor people out of nice areas where affluent Tory-leaning voters are entitled to live.

Rather flimsy statistics released last week about immigrants were part of the same mission: make the less well off concentrate on the undeserving poor and foreigners, and they might forget who's really screwing them.

Does it work? It might, if we let it happen. As I've said, it's exhausting trying to keep up with politics when you're away from a PC all day, when you're too knackered when you get home to glue yourself to Newsnight and digest the issues of the day. Tempting, perhaps, to blame the family on benefits across the road, or the immigrants next door, for why life sucks so much. Tempting, but wrong.

I may be the Squeezed Middle, but I know who's doing the squeezing. And I know just how much all three of our political parties are really doing to change that situation: not a great deal at all.

Patrolling the murkier waters of the mainstream media
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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.