alb2 - you sound lovely and genuine and I daresay if all our politicians were like you, we'd still have a Labour govt - I'm not sure you're not a rather better person than those you support...
But to get to your point, above - where I lived, Labour stood no chance, so my vote was a very deliberate 'vote from the heart' - if it had been in an area where Labour could keep a Tory out I probably would have voted Labour for that reason - though have to say I was v effed off with many of Labour's policies. Though I do agree that Labour is fundamentally a more moral party, and I agree largely with the principles you outlined above.
I think where the Labour party lost me was in your first sentence - I don't think working people should need a 'top up' - I don't want my taxes to go igher just so I can be given back less than they took in the first place in he form of a tax crdit. It doesn't make sense in terms of admin costs and it doesn't make sense logically - if I'm poor enough to be deemed to need a tax credit, then why have you just upped my taxes?
The fundamental reason that so many people in the 'squeezed middle' need a top up these days is the cost of housing - I am beyond angry at Labour's record on housing, after Gordon's 'no more boom and bus' comments.
Had Labour not instituted a slew of policies designed purely to keep house prices at artificial highs against the odds and all signs that it could only implode financially, then most of the working poor and the squuezed middle could be quite comfortably off.
We are the first generation who are poorer than our parents (though far better educated) and it is purely own to the high cost of housing. It provides a huge disincentive to the unemployed or low paid to increase earnings, as if they lose their benefits and have to pay for their housing themselves they will actually be worse off.
I am angry at the Mandelson-inspired brown-nosing of the rich, and angry at the fact that in a valiant effort not to disadvantage the poor, they forget that there needed to be some reward for those who do work long hours and don't just give up and rely on the state - or why should anyone bother?
The current finacial situation obviously owes elements to global financial problems, but I do feel Labour's policies (particularly on lax regulation of the banking system and esp re houses) made it worse, not better.
I really loathe George Osborne - please do provide me with an opposition I can feel comfortable voting for again!