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| Tory MPs increase pressure on Osborne to soften tax credit cuts | Tory MPs increase pressure on Osborne to soften tax credit cuts |
| (35 minutes later) | |
| George Osborne is under increasing pressure from his own MPs to soften his tax credit cuts after the former cabinet minister, Andrew Mitchell, urged him to do more to “ameliorate” the impact on the low paid. | |
| Mitchell insisted that most of the 3 million people due to lose money from April would not be worse off after wage increases, tax cuts and childcare changes were taken into account. | |
| However, he told the BBC’s Sunday Politics there were “two particular efforts we need to take now to ensure we minimise the impact on what you rightly say are hard-working and low-paid families. | |
| Related: The Observer view on tax credit cuts | Observer editorial | Related: The Observer view on tax credit cuts | Observer editorial |
| “These are very significant changes and therefore I am sure the chancellor is keeping an open mind and will be looking to see whether any specific tweaks need to be made in the comprehensive spending review which takes place next month,” he said. | “These are very significant changes and therefore I am sure the chancellor is keeping an open mind and will be looking to see whether any specific tweaks need to be made in the comprehensive spending review which takes place next month,” he said. |
| “In addition, I think it is important that there should be individual treatment through the DWP [Department for Work and Pensions] where the officials in that department and all around the country in the offices that deal with this are able to help individuals to see whether they will be affected and how any effects can be ameliorated.” | “In addition, I think it is important that there should be individual treatment through the DWP [Department for Work and Pensions] where the officials in that department and all around the country in the offices that deal with this are able to help individuals to see whether they will be affected and how any effects can be ameliorated.” |
| There were also reports over the weekend that Iain Duncan Smith, the work and pensions secretary, wants extra support for those who are shortly to be told how much money they will lose. | There were also reports over the weekend that Iain Duncan Smith, the work and pensions secretary, wants extra support for those who are shortly to be told how much money they will lose. |
| The sweeping changes to tax credits, aimed at saving the Treasury billions of pounds, will affect millions of people and could cost some families up to £1,300 a year. | The sweeping changes to tax credits, aimed at saving the Treasury billions of pounds, will affect millions of people and could cost some families up to £1,300 a year. |
| Ruth Davidson, the Conservative leader in Scotland, told a fringe event at the Tory party conference that she would like to see more detail on how tax credit cuts will work in practice, while former Tory minister David Willetts and the Labour welfare expert Frank Field have warned more explicitly about their impact. | Ruth Davidson, the Conservative leader in Scotland, told a fringe event at the Tory party conference that she would like to see more detail on how tax credit cuts will work in practice, while former Tory minister David Willetts and the Labour welfare expert Frank Field have warned more explicitly about their impact. |
| The potential impact of the cuts will have been further underlined for Tory MPs when Michelle Dorrell, a mother of four who voted for the party, laid into the government on live television. She had tears in her eyes as she condemned the Conservatives for taking away her tax credits despite having promised not to – although it is not clear whether she earns enough to lose out personally. | |
| Only two Conservatives – David Davis and Stephen McPartland – rebelled against the government when the changes were voted through parliament last month. | Only two Conservatives – David Davis and Stephen McPartland – rebelled against the government when the changes were voted through parliament last month. |
| However, Owen Smith, the shadow work and pensions secretary, said he had spoken to “lots of Conservatives” who he believed would vote with Labour at the party’s upcoming opposition day debate. | |
| “I am here talking to you from Wales. One of the Conservatives who has been most critical of his government’s position is one of the north Wales MPs,” he told Sky News. | “I am here talking to you from Wales. One of the Conservatives who has been most critical of his government’s position is one of the north Wales MPs,” he told Sky News. |
| “I hope he will decide that he needs to vote with his conscience and vote with us next week.” | “I hope he will decide that he needs to vote with his conscience and vote with us next week.” |
| Related: Tory MPs in 71 marginal seats at risk from cuts to tax credits | Related: Tory MPs in 71 marginal seats at risk from cuts to tax credits |
| New research shows 71 Tory MPs in marginal seats could be voted out by people who are affected by the cuts. There is particular concern among backbenchers that Cameron appeared to rule out cuts to tax credits before the election and that they will be punished electorally for such a broken promise. | New research shows 71 Tory MPs in marginal seats could be voted out by people who are affected by the cuts. There is particular concern among backbenchers that Cameron appeared to rule out cuts to tax credits before the election and that they will be punished electorally for such a broken promise. |
| Labour said the House of Commons library has estimated that 3.2 million families who depend on tax credits to make ends meet will be on average £1,300 a year worse off – with some losing up to £3,000 from their family income – if the cuts are not reversed. | Labour said the House of Commons library has estimated that 3.2 million families who depend on tax credits to make ends meet will be on average £1,300 a year worse off – with some losing up to £3,000 from their family income – if the cuts are not reversed. |
| Seema Malhotra, Labour’s shadow chief secretary to the Treasury, said the tax credit cuts were a moment akin to Margaret Thatcher’s attempted introduction of the poll tax. | Seema Malhotra, Labour’s shadow chief secretary to the Treasury, said the tax credit cuts were a moment akin to Margaret Thatcher’s attempted introduction of the poll tax. |
| “We have asked him [Osborne] to reverse it, we have said that this cut should not go forward and I’ll tell you why: because this is a cut to hard-working families who are doing absolutely the right thing. It is a work penalty,” she told the BBC’s Andrew Marr Show. | “We have asked him [Osborne] to reverse it, we have said that this cut should not go forward and I’ll tell you why: because this is a cut to hard-working families who are doing absolutely the right thing. It is a work penalty,” she told the BBC’s Andrew Marr Show. |
| However, she was not clear about whether Labour could definitively say it would reverse the cuts. | However, she was not clear about whether Labour could definitively say it would reverse the cuts. |
| John McDonnell, the shadow chancellor, later explicitly confirmed Labour would reverse the tax credits cuts if Osborne does not halt his plan. | John McDonnell, the shadow chancellor, later explicitly confirmed Labour would reverse the tax credits cuts if Osborne does not halt his plan. |
| Osborne and David Cameron have both stood firm on the need for the tax credit cuts, insisting people will not be worse off when the new higher “national living wage” and other changes come into force next year. | Osborne and David Cameron have both stood firm on the need for the tax credit cuts, insisting people will not be worse off when the new higher “national living wage” and other changes come into force next year. |
| Greg Hands, a senior Treasury minister, challenged Labour to say where they would get the money to reverse tax credit cuts. | Greg Hands, a senior Treasury minister, challenged Labour to say where they would get the money to reverse tax credit cuts. |
| “Eleven times today, Labour refused to say they would reverse our necessary reforms to the complicated, means-tested payments called tax credits, which they ended up making to nine out of every 10 UK families, including MPs,” Hands said. | |
| “Now, just hours later, John McDonnell says he would reverse the changes, with no explanation of where the £4.4bn cost would come from. Labour’s economic policy lurches further from chaos to incredibility. Labour need to answer whether they would cut people’s pay by putting up taxes, by cutting the NHS, schools or benefits for the disabled. Or do they just propose to borrow forever, putting the economic security of working families at risk?” |