Up the Junction is an excellent example. In fact talking of Squeeze;

Shake up at the ceilidh and I think I've got a pull
I ask her lots of questions as she hangs on to the wall
I kiss her for the first time, urgh! she's been eating salad
I'm invited in for coffee and I give the dog a ballad

etc etc.

As we are talking of care homes, Elvis Costello's Veronica is possibly one of the best songs I know in the "songs about real people" model. Even Jim can't complain there as Elvis's first professional gig was supporting Ewan MacColl and Peggy Seeger. He also produced most of The Pogues albums and plays the strumming guitar on their Dirty Old Town. He's even a scouser for that matter and his songs reflect real people. When I sing any of his in a folk club with an acoustic guitar they also become real folk songs eh?