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| Tory MP says tax credits fail Cameron's family test – live updates | Tory MP says tax credits fail Cameron's family test – live updates |
| (3 months later) | |
| 6.18pm BST | |
| 18:18 | |
| Afternoon summary | Afternoon summary |
| For more on the other two big political stories of today, we’ve been live blogging the UK steel industry crisis here and the state visit from the Chinese president here. | For more on the other two big political stories of today, we’ve been live blogging the UK steel industry crisis here and the state visit from the Chinese president here. |
| That’s all from me for today. I’ll be back tomorrow. Thanks for all the comments! | That’s all from me for today. I’ll be back tomorrow. Thanks for all the comments! |
| 5.47pm BST | |
| 17:47 | |
| Opposition MPs are congratulating Heidi Allen on her speech – | Opposition MPs are congratulating Heidi Allen on her speech – |
| Moving and important maiden speech from @heidiallen75 in the House. Important that we don't build our future on the backs of the poorest | Moving and important maiden speech from @heidiallen75 in the House. Important that we don't build our future on the backs of the poorest |
| .@heidiallen75 making v interesting independent & intelligent maiden speech.Tory backbenchers don't know what to make of it #taxcreditscuts | .@heidiallen75 making v interesting independent & intelligent maiden speech.Tory backbenchers don't know what to make of it #taxcreditscuts |
| @STJamesl @heidiallen75 she should've picked the red team | @STJamesl @heidiallen75 she should've picked the red team |
| I must congratulate @heidiallen75 on her honest and brave maiden speech. It's the first time I've heard genuine compassionate conservatism | I must congratulate @heidiallen75 on her honest and brave maiden speech. It's the first time I've heard genuine compassionate conservatism |
| Impressive maiden speech from @heidiallen75 - criticising govt on tax credits and staking claim as new voice of compassionate conservatism. | Impressive maiden speech from @heidiallen75 - criticising govt on tax credits and staking claim as new voice of compassionate conservatism. |
| @heidiallen75 I salute your courageous maiden speech criticising your Government's tax credit cuts policy. It was eloquent, moral & brave | @heidiallen75 I salute your courageous maiden speech criticising your Government's tax credit cuts policy. It was eloquent, moral & brave |
| Updated | |
| at 5.51pm BST | |
| 5.41pm BST | |
| 17:41 | |
| Sam Coates, the Times’s deputy political editor, points out that Allen voted for the tax credits changes two weeks ago. | Sam Coates, the Times’s deputy political editor, points out that Allen voted for the tax credits changes two weeks ago. |
| (Heidi Allen voted FOR the tax credit changes two weeks ago) https://t.co/cppePOrjmr | (Heidi Allen voted FOR the tax credit changes two weeks ago) https://t.co/cppePOrjmr |
| Some Tory MPs voted for tax credit changes believing they had been told there would be mitigation - only for the tone privately to change | Some Tory MPs voted for tax credit changes believing they had been told there would be mitigation - only for the tone privately to change |
| Updated | |
| at 5.47pm BST | |
| 5.24pm BST | |
| 17:24 | |
| Heidi Allen MP seems to be a little worried about her job security after her maiden speech – | Heidi Allen MP seems to be a little worried about her job security after her maiden speech – |
| 5.17pm BST | |
| 17:17 | |
| Mhairi Black MP starts her comments by saying Allen’s speech was honest and courageous. She also says she agrees with the Conservatives that “work should pay”. | Mhairi Black MP starts her comments by saying Allen’s speech was honest and courageous. She also says she agrees with the Conservatives that “work should pay”. |
| She talked about the proposal that would require a woman who had a third child as the result of rape to justify her position in order to avoid losing tax credits. | She talked about the proposal that would require a woman who had a third child as the result of rape to justify her position in order to avoid losing tax credits. |
| Is that really where we are now setting the bar for providing decent opportunities for our children – if they are the product of rape? Forgetting the fact that this is a moral outrage from the get-go, it is completely unsustainable. How do you qualify for that? Do you have to have a conviction for rape? Is it just that there’s a claim for rape? It is completely unrealistic. | Is that really where we are now setting the bar for providing decent opportunities for our children – if they are the product of rape? Forgetting the fact that this is a moral outrage from the get-go, it is completely unsustainable. How do you qualify for that? Do you have to have a conviction for rape? Is it just that there’s a claim for rape? It is completely unrealistic. |
| 5.04pm BST | |
| 17:04 | |
| Right-wing think tanks criticise tax credits policy | Right-wing think tanks criticise tax credits policy |
| And Heidi Allen isn’t the only right-winger to come out against the tax credits proposals today. | And Heidi Allen isn’t the only right-winger to come out against the tax credits proposals today. |
| The Adam Smith Institute and the Institute of Economic Affairs – both Thatcherite think tanks – have criticised the government’s proposals. | The Adam Smith Institute and the Institute of Economic Affairs – both Thatcherite think tanks – have criticised the government’s proposals. |
| Sam Bowman, deputy director of the Adam Smith Institute, said “working tax credits are the best form of welfare we have, and cutting them would be a huge mistake”. | Sam Bowman, deputy director of the Adam Smith Institute, said “working tax credits are the best form of welfare we have, and cutting them would be a huge mistake”. |
| The government has long claimed to want to make work pay for everyone, but cutting tax credits would disincentivise work and hurt those at the bottom of society. | The government has long claimed to want to make work pay for everyone, but cutting tax credits would disincentivise work and hurt those at the bottom of society. |
| Contrary to the government’s claims, the National Living Wage will do little to help those affected by these cuts and, according to the Office for Budget Responsibility, it risks adding insult to injury by pricing tens of thousands of workers out of the labour market altogether. | Contrary to the government’s claims, the National Living Wage will do little to help those affected by these cuts and, according to the Office for Budget Responsibility, it risks adding insult to injury by pricing tens of thousands of workers out of the labour market altogether. |
| There is little evidence that tax credits ‘subsidise’ employers, except to the extent that they make more people willing to work in the first place, creating a larger pool of workers. The politics of this looks dangerous, too: when it’s working families at the bottom of the income distribution that are being hit hardest, it’s hard to say that we are ‘all in this together’. We urge the Chancellor to rethink these cuts and find savings elsewhere instead. | There is little evidence that tax credits ‘subsidise’ employers, except to the extent that they make more people willing to work in the first place, creating a larger pool of workers. The politics of this looks dangerous, too: when it’s working families at the bottom of the income distribution that are being hit hardest, it’s hard to say that we are ‘all in this together’. We urge the Chancellor to rethink these cuts and find savings elsewhere instead. |
| Ryan Bourne, head of public policy at the Institute of Economic Affairs, said the Conservative Party was right to highlight the broad need for reform of tax credits, which he argued “ensnares 4.6 million households, at a colossal cost of £30 billion”. | Ryan Bourne, head of public policy at the Institute of Economic Affairs, said the Conservative Party was right to highlight the broad need for reform of tax credits, which he argued “ensnares 4.6 million households, at a colossal cost of £30 billion”. |
| The system is complex, having evolved with the competing aims of encouraging work and directly alleviating poverty. But rather than completely re-thinking the point of credits, the particular reforms proposed by the government would merely slash the threshold above which tax credits are withdrawn and increase their withdrawal rate. Not only will this make many families worse off, it would reduce the incentive for many to move into work or earn more, as marginal tax rates will be as high as 80 per cent. | The system is complex, having evolved with the competing aims of encouraging work and directly alleviating poverty. But rather than completely re-thinking the point of credits, the particular reforms proposed by the government would merely slash the threshold above which tax credits are withdrawn and increase their withdrawal rate. Not only will this make many families worse off, it would reduce the incentive for many to move into work or earn more, as marginal tax rates will be as high as 80 per cent. |
| It’s true that it’s impossible to save money without taking from some, but broader reform could have avoided damaging incentives in this way. Instead, the government used populist rhetoric about ‘taxpayers subsidising employers’ and introduced a misguided National Living Wage to mask changes which will discourage work and harm many low paid workers. | It’s true that it’s impossible to save money without taking from some, but broader reform could have avoided damaging incentives in this way. Instead, the government used populist rhetoric about ‘taxpayers subsidising employers’ and introduced a misguided National Living Wage to mask changes which will discourage work and harm many low paid workers. |
| 4.56pm BST | |
| 16:56 | |
| Summary of Heidi Allen's maiden speech | Summary of Heidi Allen's maiden speech |
| It must have been one of the latest maiden speeches given to parliament since May, but Heidi Allen’s was worth the wait. | It must have been one of the latest maiden speeches given to parliament since May, but Heidi Allen’s was worth the wait. |
| Allen said she had her political awakening during the Tottenham riots, which she said “shook her from her comfort zone”. She said the spectacle made her feel that she had to do something and she “picked the blue team”. | Allen said she had her political awakening during the Tottenham riots, which she said “shook her from her comfort zone”. She said the spectacle made her feel that she had to do something and she “picked the blue team”. |
| “Believe me when I say that I do entirely agree with the principle that tax credits shouldn’t be used to subsidise wages,” said Allen. “It isn’t sustainable and sends the wrong message about the kind of country and people we want to be.” | “Believe me when I say that I do entirely agree with the principle that tax credits shouldn’t be used to subsidise wages,” said Allen. “It isn’t sustainable and sends the wrong message about the kind of country and people we want to be.” |
| Despite speaking out against the proposed tax credits cuts, Allen said she wouldn’t be voting with the opposition because she still thought the system needed reform. | Despite speaking out against the proposed tax credits cuts, Allen said she wouldn’t be voting with the opposition because she still thought the system needed reform. |
| “I worry that our single-minded determination to pursue a budget surplus is betraying who we are,” she said, adding: “I know true Conservatives have compassion running though their veins.” | “I worry that our single-minded determination to pursue a budget surplus is betraying who we are,” she said, adding: “I know true Conservatives have compassion running though their veins.” |
| “I am not interested in the colour of the government who created a bloated welfare state. That is in the past. I don’t care whose fault it is, but I do know one thing – it is not the fault of the recipients of tax credits,” said Allen. | “I am not interested in the colour of the government who created a bloated welfare state. That is in the past. I don’t care whose fault it is, but I do know one thing – it is not the fault of the recipients of tax credits,” said Allen. |
| “This is not a spreadsheet exercise... we are talking about real people, working people.” | “This is not a spreadsheet exercise... we are talking about real people, working people.” |
| Allen criticised the government for talking about the effect its tax credits changes would have over the course of a parliament. She said many people living on the breadline couldn’t afford to wait that long. “For many everyday living is hand-to-mouth living,” she said. | Allen criticised the government for talking about the effect its tax credits changes would have over the course of a parliament. She said many people living on the breadline couldn’t afford to wait that long. “For many everyday living is hand-to-mouth living,” she said. |
| “Conservatives pride ourselves for living within our means, for cutting our cloth, but what if there is no more cloth to cut?” she said. | “Conservatives pride ourselves for living within our means, for cutting our cloth, but what if there is no more cloth to cut?” she said. |
| “I became an MP to stand up for the vulnerable to lead the way for those too tired to find it for themselves,” said Allen. “That is the role of government too.” | “I became an MP to stand up for the vulnerable to lead the way for those too tired to find it for themselves,” said Allen. “That is the role of government too.” |
| Allen said it was offensive to suggest that Conservative MPs who had criticised the government’s plans were only doing it because they were nervous about losing their seats. | Allen said it was offensive to suggest that Conservative MPs who had criticised the government’s plans were only doing it because they were nervous about losing their seats. |
| Cutting tax credits before wages rise does not pass “the family test” set by David Cameron, she said. | Cutting tax credits before wages rise does not pass “the family test” set by David Cameron, she said. |
| “I believe the pace of these reforms is too hard and too fast... Something must give. For those of us proud enough to call ourselves compassionate Conservatives, it must not go onto the backs of the working families we purport to serve.” | “I believe the pace of these reforms is too hard and too fast... Something must give. For those of us proud enough to call ourselves compassionate Conservatives, it must not go onto the backs of the working families we purport to serve.” |
| 4.25pm BST | |
| 16:25 | |
| Conservative MP Heidi Allen uses maiden speech to slam tax credits plans | Conservative MP Heidi Allen uses maiden speech to slam tax credits plans |
| Heidi Allen MP, who was elected for South Cambridgeshire in May, has used her first speech in the Commons to slam the government’s tax credits plans. | Heidi Allen MP, who was elected for South Cambridgeshire in May, has used her first speech in the Commons to slam the government’s tax credits plans. |
| Heidi Allen, new Tory MP for Cambridgeshire South, breaks silence in @HouseofCommons to criticise tax credit cuts + @George_Osborne surplus | Heidi Allen, new Tory MP for Cambridgeshire South, breaks silence in @HouseofCommons to criticise tax credit cuts + @George_Osborne surplus |
| Heidi Allen really going for govt on tax credits: naive to assume people can immediately find more hours at work | Heidi Allen really going for govt on tax credits: naive to assume people can immediately find more hours at work |
| And now @heidiallen75 says tax credit cuts fail family test set by @David_Cameron | And now @heidiallen75 says tax credit cuts fail family test set by @David_Cameron |
| “Every Conservative member who knows who we really are, has a duty to remind those who have forgotten. We are the party of the working people,” said Allen. | “Every Conservative member who knows who we really are, has a duty to remind those who have forgotten. We are the party of the working people,” said Allen. |
| “Change is not always a sign of weakness,” she said, pointing to the change in public opinion that came with the pictures emerging from the migration crisis. | “Change is not always a sign of weakness,” she said, pointing to the change in public opinion that came with the pictures emerging from the migration crisis. |
| “I believe the pace of these reforms is too hard and too fast... Something must give. For those of us proud enough to call ourselves compassionate Conservatives, it must not go onto the backs of the working families we purport to serve.” | “I believe the pace of these reforms is too hard and too fast... Something must give. For those of us proud enough to call ourselves compassionate Conservatives, it must not go onto the backs of the working families we purport to serve.” |
| Updated | |
| at 4.32pm BST | |
| 4.13pm BST | |
| 16:13 | |
| Government faces tax credits battle in the Lords – summary | Government faces tax credits battle in the Lords – summary |
| Despite only having eight MPs in the Commons, the Lib Dems have 108 peers in the House of Lords. It is the first time in modern political history that a Conservative majority government has not also had a majority in the Lords. If the Labour party and Liberal Democrats vote together in the Lords, they only need a handful of cross-benchers to vote with them to defeat the government. | Despite only having eight MPs in the Commons, the Lib Dems have 108 peers in the House of Lords. It is the first time in modern political history that a Conservative majority government has not also had a majority in the Lords. If the Labour party and Liberal Democrats vote together in the Lords, they only need a handful of cross-benchers to vote with them to defeat the government. |
| By custom and practice, peers do not challenge financial measures and policies that were in a governing party’s manifesto, but Farron has been arguing that the specific tax credits measure was not in the Conservative party manifesto and was even specifically denied by David Cameron in a leaders’ TV election debate, after the Guardian revealed a document leaked by the Lib Dems showing that the government had been considering cuts to tax credits. | By custom and practice, peers do not challenge financial measures and policies that were in a governing party’s manifesto, but Farron has been arguing that the specific tax credits measure was not in the Conservative party manifesto and was even specifically denied by David Cameron in a leaders’ TV election debate, after the Guardian revealed a document leaked by the Lib Dems showing that the government had been considering cuts to tax credits. |
| The debate has seen some dissenting voices on the government benches, including Edward Leigh and Heidi Allen, who is currently using her maiden speech to criticise the government’s proposals (though she will vote for the motion). | The debate has seen some dissenting voices on the government benches, including Edward Leigh and Heidi Allen, who is currently using her maiden speech to criticise the government’s proposals (though she will vote for the motion). |
| Updated | |
| at 4.14pm BST | |
| 3.56pm BST | |
| 15:56 | |
| Baroness Meacher will table 'fatal motion' to kill tax credits cuts in Lords | Baroness Meacher will table 'fatal motion' to kill tax credits cuts in Lords |
| Journalists are tweeting that Baroness Meacher will table a “fatal motion” to kill off the tax credits cuts in the Lords next week. | Journalists are tweeting that Baroness Meacher will table a “fatal motion” to kill off the tax credits cuts in the Lords next week. |
| Am told so called "fatal motion" to halt cuts to tax credits has been tabled by Baroness Meacher in Lords | Am told so called "fatal motion" to halt cuts to tax credits has been tabled by Baroness Meacher in Lords |
| Baroness Meacher confirms she will put down the fatal tax credits motion in the Lords next Monday. "I am going to do it". | Baroness Meacher confirms she will put down the fatal tax credits motion in the Lords next Monday. "I am going to do it". |
| The Huffington Post reported yesterday that a cross-bench peer was being lined up to table a rarely-used ‘fatal motion’ and the Financial Times reported that Baroness Meacher was considering putting it forward. | The Huffington Post reported yesterday that a cross-bench peer was being lined up to table a rarely-used ‘fatal motion’ and the Financial Times reported that Baroness Meacher was considering putting it forward. |
| Only a handful of ‘fatal motions’ have been successfully passed since the 1960s, as peers are nervous of abusing their powers. | Only a handful of ‘fatal motions’ have been successfully passed since the 1960s, as peers are nervous of abusing their powers. |
| If the motion was passed it would kill off the government’s plans. | If the motion was passed it would kill off the government’s plans. |
| The Liberal Democrats – with their disproportionate number of peers (108) – have been arguing that the Salisbury convention is outdated for months. (The Salisbury convention dictates that peers shouldn’t vote down legislation that was in a governing party’s manifesto.) | The Liberal Democrats – with their disproportionate number of peers (108) – have been arguing that the Salisbury convention is outdated for months. (The Salisbury convention dictates that peers shouldn’t vote down legislation that was in a governing party’s manifesto.) |
| Updated | |
| at 4.02pm BST | |
| 3.31pm BST | |
| 15:31 | |
| My colleague Patrick Wintour has written about the Liberal Democrat plans to vote against the tax credits cuts in the Lords on Thursday. | My colleague Patrick Wintour has written about the Liberal Democrat plans to vote against the tax credits cuts in the Lords on Thursday. |
| The chances of the government being defeated on plans to cut tax credits in the Lords next week have risen markedly after the Liberal Democrat leader, Tim Farron, instructed his peers to vote for the fatal motion to block them. | The chances of the government being defeated on plans to cut tax credits in the Lords next week have risen markedly after the Liberal Democrat leader, Tim Farron, instructed his peers to vote for the fatal motion to block them. |
| The Lib Dem peer Lord Kirkwood had been planning to move a motion of regret, which would have amounted to a request for the government to reconsider its plans. | The Lib Dem peer Lord Kirkwood had been planning to move a motion of regret, which would have amounted to a request for the government to reconsider its plans. |
| But Farron’s intervention on Tuesday means the government is now likely to be defeated, requiring ministers to restart the process in the Commons via a new statutory instrument. | But Farron’s intervention on Tuesday means the government is now likely to be defeated, requiring ministers to restart the process in the Commons via a new statutory instrument. |
| You can read the full story here. | You can read the full story here. |
| 3.19pm BST | |
| 15:19 | |
| It is important to consider the wider effect of the National Living Wage, says Hinds. The independent Office for Budget Responsibility said that 6m people will get a pay rise as a result of the measure, a pay rise that will start to take effect now but will continue until the end of the decade. “Madame deputy speaker, we are not just talking about moving to a high wage, low tax, low welfare economy. We are doing it.” | It is important to consider the wider effect of the National Living Wage, says Hinds. The independent Office for Budget Responsibility said that 6m people will get a pay rise as a result of the measure, a pay rise that will start to take effect now but will continue until the end of the decade. “Madame deputy speaker, we are not just talking about moving to a high wage, low tax, low welfare economy. We are doing it.” |
| Former shadow business secretary Chuka Umunna says that while state subsidy going to employers to top-up low wages is not desirable, it is the order of the government’s policy that is the problem, ie. cutting tax credits before the wages go up enough. | Former shadow business secretary Chuka Umunna says that while state subsidy going to employers to top-up low wages is not desirable, it is the order of the government’s policy that is the problem, ie. cutting tax credits before the wages go up enough. |
| Updated | |
| at 3.20pm BST | |
| 3.08pm BST | |
| 15:08 | |
| Damian Hinds says that when tax credits first came in “their aims were entirely noble”, but their cost quickly soared out of control. | Damian Hinds says that when tax credits first came in “their aims were entirely noble”, but their cost quickly soared out of control. |
| “We can kick a problem down the road or we can do something about it...our reforms don’t abolish tax credits or anything close,” he says. | “We can kick a problem down the road or we can do something about it...our reforms don’t abolish tax credits or anything close,” he says. |
| Owen Smith, shadow secretary of state for work and pensions, says that tax credits cost £22bn in the last parliament and have gone up to £30bn, so they have increased on the Tories’ watch. | Owen Smith, shadow secretary of state for work and pensions, says that tax credits cost £22bn in the last parliament and have gone up to £30bn, so they have increased on the Tories’ watch. |
| 3.01pm BST | |
| 15:01 | |
| Sylvia Hermon, MP for North Down, says she feels ashamed to have voted with the government on tax credits. She says she did so because she had been reassured that there would be measures to mitigate the effects of the cuts. There have been no mitigating measures announced. She will be voting with the opposition this time, says says. | Sylvia Hermon, MP for North Down, says she feels ashamed to have voted with the government on tax credits. She says she did so because she had been reassured that there would be measures to mitigate the effects of the cuts. There have been no mitigating measures announced. She will be voting with the opposition this time, says says. |
| 2.58pm BST | |
| 14:58 | |
| Conservative MP Sir Edward Leigh asks Hinds whether the Conservatives should tweak the proposals relating to child tax credits for reasons of compassion. He says he doesn’t expect Hinds to answer the question immediately. | Conservative MP Sir Edward Leigh asks Hinds whether the Conservatives should tweak the proposals relating to child tax credits for reasons of compassion. He says he doesn’t expect Hinds to answer the question immediately. |
| 2.56pm BST | |
| 14:56 | |
| Damian Hinds, exchequer secretary to the treasury, is responding to Malhotra. “We believe in people being able to meet their potential, fulfil their aspirations, no matter where they come from in life,” he says. | Damian Hinds, exchequer secretary to the treasury, is responding to Malhotra. “We believe in people being able to meet their potential, fulfil their aspirations, no matter where they come from in life,” he says. |
| The tax credit cuts needs to be understood as one measure in a package of measures, which includes the ‘National Living Wage’, the increase in the personal allowance and the increase in jobs. He says the opposition likes to pretend we live in a world where there is unlimited money. | The tax credit cuts needs to be understood as one measure in a package of measures, which includes the ‘National Living Wage’, the increase in the personal allowance and the increase in jobs. He says the opposition likes to pretend we live in a world where there is unlimited money. |
| Updated | |
| at 3.08pm BST | |
| 2.52pm BST | |
| 14:52 | |
| Caroline Lucas, Green party MP for Brighton Pavilion, says that 4,400 of her constituents will be affected by the tax credit cuts. She says that people in areas with “sky high private rent” will be hit the hardest. | Caroline Lucas, Green party MP for Brighton Pavilion, says that 4,400 of her constituents will be affected by the tax credit cuts. She says that people in areas with “sky high private rent” will be hit the hardest. |
| Malhotra agrees (she represents a London constituency). “These cuts are being made without any recognition of the increase in the cost of living,” she says. | Malhotra agrees (she represents a London constituency). “These cuts are being made without any recognition of the increase in the cost of living,” she says. |
| This decision is not just poor economics, but it is poor politics, concludes Malhotra. Tackling in-work poverty is crucial, but not in this way. | This decision is not just poor economics, but it is poor politics, concludes Malhotra. Tackling in-work poverty is crucial, but not in this way. |
| 2.47pm BST | |
| 14:47 | |
| Conservative MP Alan Mak asks Malhotra whether she knows that the tax credits system cost £4.4bn when it was first introduced and that it now costs £30bn. Will she acknowledge that “the only credible welfare system is an affordable one?” he says. | Conservative MP Alan Mak asks Malhotra whether she knows that the tax credits system cost £4.4bn when it was first introduced and that it now costs £30bn. Will she acknowledge that “the only credible welfare system is an affordable one?” he says. |
| She asks what Mak will say to the 4,500 families in his constituency who will suffer an average cut to their income of over £1,300. She asks him how they will keep a roof over their heads, how they will keep food on table or how they will buy clothes for children. | She asks what Mak will say to the 4,500 families in his constituency who will suffer an average cut to their income of over £1,300. She asks him how they will keep a roof over their heads, how they will keep food on table or how they will buy clothes for children. |
| Updated | |
| at 2.47pm BST | |
| 2.40pm BST | |
| 14:40 | |
| Conservative MPs are repeatedly interrupting Malhotra’s opening argument to ask what else she would cut or where she would raise taxes if she didn’t bring down the tax credits bill. | Conservative MPs are repeatedly interrupting Malhotra’s opening argument to ask what else she would cut or where she would raise taxes if she didn’t bring down the tax credits bill. |
| 2.37pm BST | |
| 14:37 | |
| We all want a high wage and low welfare society, says Malhotra, but the chancellor has not been upfront on the effects of his policies. | We all want a high wage and low welfare society, says Malhotra, but the chancellor has not been upfront on the effects of his policies. |
| The IFS has shown that the welfare spending was barely reduced in the last parliament because government policies meant people needed to claim more, she says. | The IFS has shown that the welfare spending was barely reduced in the last parliament because government policies meant people needed to claim more, she says. |
| “The chancellor chose not to do or not to publish an impact assessment” on these changes, she says. “Either they don’t want to know or they don’t want to tell.” | “The chancellor chose not to do or not to publish an impact assessment” on these changes, she says. “Either they don’t want to know or they don’t want to tell.” |
| 2.31pm BST | |
| 14:31 | |
| MPs debate tax credit reforms | MPs debate tax credit reforms |
| The opposition day debate on tax credits is underway. | The opposition day debate on tax credits is underway. |
| Shadow chief secretary to the treasury, Seema Malhotra, is giving her opening statement. She highlights that the prime minister said he would not cut child tax credits in the run-up to May’s general election. “The government has not told the truth step-by-step-on this measure” since they announced it, she says. | Shadow chief secretary to the treasury, Seema Malhotra, is giving her opening statement. She highlights that the prime minister said he would not cut child tax credits in the run-up to May’s general election. “The government has not told the truth step-by-step-on this measure” since they announced it, she says. |
| Updated | |
| at 2.47pm BST | |
| 2.27pm BST | |
| 14:27 | |
| Work and pensions committee to hold urgent session on tax credits | Work and pensions committee to hold urgent session on tax credits |
| The commons work and pensions select committee has announced that it will hold an urgent session on the proposed reforms to the tax credit system on Monday 26th October at 3.30pm. | The commons work and pensions select committee has announced that it will hold an urgent session on the proposed reforms to the tax credit system on Monday 26th October at 3.30pm. |
| The committee will look at: | The committee will look at: |
| The session will hear evidence from Paul Johnson, director of the Institute for Fiscal Studies, William Elming, research economist at the Institute for Fiscal Studies, and Torsten Bell, director of the Resolution Foundation. | The session will hear evidence from Paul Johnson, director of the Institute for Fiscal Studies, William Elming, research economist at the Institute for Fiscal Studies, and Torsten Bell, director of the Resolution Foundation. |
| Frank Field MP, chair of the committee, said: | Frank Field MP, chair of the committee, said: |
| We hope to be in a position to help the Government reform the tax credit system on three fronts – to make it fairer, simpler and more affordable. Our reform blueprint will be built on suggestions that make tax credits a more effective anti-poverty benefit, so that work always pays a decent income, at no extra cost to the taxpayer. | We hope to be in a position to help the Government reform the tax credit system on three fronts – to make it fairer, simpler and more affordable. Our reform blueprint will be built on suggestions that make tax credits a more effective anti-poverty benefit, so that work always pays a decent income, at no extra cost to the taxpayer. |
| A crucial element of this blueprint will be to make it easier for future governments to make changes at the top end of the income spectrum that do not necessarily affect claimants at the very bottom of the pile. One of the flaws exposed by the current political debate on tax credits is the inability to remove relatively high earners from the welfare system without also clobbering the poorest workers and their families. We will aim to address such shortcomings and hope an announcement of mitigating measures will be forthcoming. | A crucial element of this blueprint will be to make it easier for future governments to make changes at the top end of the income spectrum that do not necessarily affect claimants at the very bottom of the pile. One of the flaws exposed by the current political debate on tax credits is the inability to remove relatively high earners from the welfare system without also clobbering the poorest workers and their families. We will aim to address such shortcomings and hope an announcement of mitigating measures will be forthcoming. |
| 1.42pm BST | |
| 13:42 | |
| Lunchtime summary | Lunchtime summary |
| Here’s a quick lunchtime summary before the tax credits debate in parliament in about an hour. | Here’s a quick lunchtime summary before the tax credits debate in parliament in about an hour. |
| I think its very disappointing that Lord Warner has decided to leave the party at this time when we do have a new leadership that is now still bedding in. It’s only been a month since the leadership election and I think what we can say about Jeremy Corbyn is he has surprised every step of the way. | I think its very disappointing that Lord Warner has decided to leave the party at this time when we do have a new leadership that is now still bedding in. It’s only been a month since the leadership election and I think what we can say about Jeremy Corbyn is he has surprised every step of the way. |
| 1.23pm BST | |
| 13:23 | |
| Oh dear. It seems business secretary Sajid Javid took up too much Commons’ time with his statement on the UK steel industry crisis. Speaker John Bercow has given him a very polite telling off. “It is, I’m afraid discourteous and incompetent, and it must not happen again.” | Oh dear. It seems business secretary Sajid Javid took up too much Commons’ time with his statement on the UK steel industry crisis. Speaker John Bercow has given him a very polite telling off. “It is, I’m afraid discourteous and incompetent, and it must not happen again.” |
| 1.15pm BST | |
| 13:15 | |
| John McDonnell: Tories "face being the new Lib Dems" because of tax credits | John McDonnell: Tories "face being the new Lib Dems" because of tax credits |
| Labour’s shadow chancellor John McDonnell has warned the Conservatives that they risk suffering the fate of the Liberal Democrats if they go ahead with their plans to cut tax credits. | Labour’s shadow chancellor John McDonnell has warned the Conservatives that they risk suffering the fate of the Liberal Democrats if they go ahead with their plans to cut tax credits. |
| Writing in the Huffington Post, McDonnell said: | Writing in the Huffington Post, McDonnell said: |
| In May, the Lib Dems were not forgiven by voters for the false promises that they gave before the 2010 election on tuition fees. And rightly so, the public want politicians who will be honest with them. The Tories need to keep their promises on tax credits or face being the new Lib Dems. | In May, the Lib Dems were not forgiven by voters for the false promises that they gave before the 2010 election on tuition fees. And rightly so, the public want politicians who will be honest with them. The Tories need to keep their promises on tax credits or face being the new Lib Dems. |
| The Tories might arrogantly hope that voters will forget, but decisions like this define governments. And the three million people who have been lied to certainly won’t forgive the Tories for the false promises they made on tax credits in May at the next election. | The Tories might arrogantly hope that voters will forget, but decisions like this define governments. And the three million people who have been lied to certainly won’t forgive the Tories for the false promises they made on tax credits in May at the next election. |
| 1.05pm BST | |
| 13:05 | |
| Stephen McPartland, Conservative MP for Stevenage, has been on the Daily Politics speaking about his decision to oppose the government’s plans to cut tax credits. | Stephen McPartland, Conservative MP for Stevenage, has been on the Daily Politics speaking about his decision to oppose the government’s plans to cut tax credits. |
| I totally agree that we need to reform tax credits – we’re spending £30bn per year on them – but I just don’t agree with what this reform is actually doing ... when you look at the original change to the threshold from £6,420 to £3,850, that’s going to be a £1,200 cut to a range of families, so if you’re a teaching assistant £11,000 per year, that’s about a 10% loss in your income and for me that’s punishing people who get up and go out to work, trying to work their way out of poverty that we should be rewarding. | I totally agree that we need to reform tax credits – we’re spending £30bn per year on them – but I just don’t agree with what this reform is actually doing ... when you look at the original change to the threshold from £6,420 to £3,850, that’s going to be a £1,200 cut to a range of families, so if you’re a teaching assistant £11,000 per year, that’s about a 10% loss in your income and for me that’s punishing people who get up and go out to work, trying to work their way out of poverty that we should be rewarding. |
| Asked how he would vote in today’s debate, McPartland wouldn’t say, arguing that he had to keep the Treasury on its toes so that the chancellor was more likely to announce measures to mitigate the cuts. | Asked how he would vote in today’s debate, McPartland wouldn’t say, arguing that he had to keep the Treasury on its toes so that the chancellor was more likely to announce measures to mitigate the cuts. |
| Updated | |
| at 1.08pm BST | |
| 12.40pm BST | |
| 12:40 | |
| Business secretary Sajid Javid is giving a statement to MPs on the redundancies at Tata Steel. You can follow the developments on our business live blog. | Business secretary Sajid Javid is giving a statement to MPs on the redundancies at Tata Steel. You can follow the developments on our business live blog. |
| 12.36pm BST | |
| 12:36 | |
| The Liberal Democrats will vote against tax credits in the Lords | The Liberal Democrats will vote against tax credits in the Lords |
| Linking to my last post, the Lords will be voting on the government’s tax credits proposals next week. John Pienaar, BBC Radio 5 live’s chief political correspondent, reports that the Liberal Democrats have instructed their peers to vote against the tax credits cuts. | Linking to my last post, the Lords will be voting on the government’s tax credits proposals next week. John Pienaar, BBC Radio 5 live’s chief political correspondent, reports that the Liberal Democrats have instructed their peers to vote against the tax credits cuts. |
| I'm told Lib Dems in the House of Lords will be formally instructed to vote down the Government's plans to cut tax credits... (1/2) | I'm told Lib Dems in the House of Lords will be formally instructed to vote down the Government's plans to cut tax credits... (1/2) |
| despite fears among senior peers that a veto could provoke a Government backlash and even constitutional retaliation against the Lords.(2/2) | despite fears among senior peers that a veto could provoke a Government backlash and even constitutional retaliation against the Lords.(2/2) |
| Unlike their team of eight MPs in the commons, the Liberal Democrats are a powerful force in the Lords, where they have 108 peers. The Conservative party does not have a majority in the Lords, but the Salisbury convention dictates that peers shouldn’t vote down legislation that was in a governing party’s manifesto. But Labour and the Lib Dems argue that the Conservative tax credit plans were not in their manifesto – in fact, David Cameron said he wouldn’t cut tax credits in the run-up to May’s general election. | Unlike their team of eight MPs in the commons, the Liberal Democrats are a powerful force in the Lords, where they have 108 peers. The Conservative party does not have a majority in the Lords, but the Salisbury convention dictates that peers shouldn’t vote down legislation that was in a governing party’s manifesto. But Labour and the Lib Dems argue that the Conservative tax credit plans were not in their manifesto – in fact, David Cameron said he wouldn’t cut tax credits in the run-up to May’s general election. |
| Updated | |
| at 1.09pm BST | |
| 12.20pm BST | |
| 12:20 | |
| Liberal Democrat leader Tim Farron has released a statement on this afternoon’s opposition day debate on tax credits: | Liberal Democrat leader Tim Farron has released a statement on this afternoon’s opposition day debate on tax credits: |
| This is George’s Poll Tax. George Osborne’s attack on working families is an aggressive assault on millions of people in Britain. | This is George’s Poll Tax. George Osborne’s attack on working families is an aggressive assault on millions of people in Britain. |
| Saying you are listening is cold comfort to hard working people who face losing a large part of their pay packet. | Saying you are listening is cold comfort to hard working people who face losing a large part of their pay packet. |
| The Tories promised tax credits were safe during the election but this was completely untrue. It is time for the Chancellor to show the leadership he so badly craves and scrap this disastrous policy. | The Tories promised tax credits were safe during the election but this was completely untrue. It is time for the Chancellor to show the leadership he so badly craves and scrap this disastrous policy. |
| George Osborne should learn from his own party’s history, and change his mind on tax credits, or give up on any desire he has to be Prime Minister. | George Osborne should learn from his own party’s history, and change his mind on tax credits, or give up on any desire he has to be Prime Minister. |