The real threat to living standards for those on low to middle incomes

Ed Miliband’s attempt on Friday’s Today programme to define the ‘squeezed middle’ has made some people question the point of the term. Shadow chief secretary Liam Byrne tried again on Sunday to pin down the concept. But the big question remains: is the ‘squeezed middle’ just a political slogan – as meaningless as ‘the deserving majority’ – or does it refer to something real, and a big, new challenge for political leaders?

Squeezed middle includes top-rate taxpayers

The Guardian this morning reports that “Labour says ‘squeezed middle’ earns up to £50,000”. The counter-intuitive result is based on analysis by the independent Institute for Fiscal Studies.

Real wages set to fall for three years

A new report shows that cuts, rising inflation and stagnating pay will make lower middle classes £720 a year worse off. It shows that wages will fall in real terms until 2013.