Its magic. But not a lot.

69% of policies announced in spending review will affect working households

Almost two-thirds of the £15.9bn welfare and benefit cuts announced in the emergency budget and spending review will hit working families

The TUC analysis of welfare changes showed working households will suffer a loss of about £9.4bn, nearly twice the level of losses for non-working households.

About 69% of the policies announced in the spending review will hit working households.

The TUC general secretary, Brendan Barber, said: "Ministers say their welfare and benefit cuts are fair and justified because they will make work pay.

"Polls show that they have already lost the fairness argument. It is working families – both the poor and the squeezed middle – who are the big losers from welfare cuts, not the alleged workshy scroungers that the government claims to target.

"These deep rapid cuts concentrated on families with children weren't in any election manifestos. The speed and scale of the cuts are not an economic necessity, but a political choice."

He added: "No one voted for these cuts to their living standards, more child poverty, mass job losses and a 'get out of tax free' card for the banks. The government needs to reconsider its spending plans before it causes any more economic damage and pain to working families."

We say that the benefit cuts are in reality tax increases for the majority of ordinary working people. Meanwhile tax relief is extended to the richest, and avoiders and evaders are rewarded with government advisory posts. Now that's magic.