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| Tax credits showdown as peers vote on welfare changes | Tax credits showdown as peers vote on welfare changes |
| (35 minutes later) | |
| Peers are set to vote on whether to delay the government's proposed cuts to tax credits or scupper them entirely in a showdown in the House of Lords. | Peers are set to vote on whether to delay the government's proposed cuts to tax credits or scupper them entirely in a showdown in the House of Lords. |
| The House will vote on a so-called "fatal motion" calling for the welfare changes to be scrapped. | The House will vote on a so-called "fatal motion" calling for the welfare changes to be scrapped. |
| Peers will also consider a separate motion urging a delay while a package of financial assistance is drafted. | Peers will also consider a separate motion urging a delay while a package of financial assistance is drafted. |
| Ministers have urged the Lords not to defy the elected Commons, but one Tory MP accused the government of bullying. | Ministers have urged the Lords not to defy the elected Commons, but one Tory MP accused the government of bullying. |
| David Davis said the plans as they stood risked causing "such agony to so many decent people" and urged ministers to "calm down the debate, listen carefully... and think again". | David Davis said the plans as they stood risked causing "such agony to so many decent people" and urged ministers to "calm down the debate, listen carefully... and think again". |
| Matthew Hancock, the Cabinet Office minister, said Chancellor George Osborne was in "listening mode" over the cuts. | |
| Growing unease | Growing unease |
| Opponents of the tax credit changes say they will leave millions of existing recipients - many of whom work but are on low incomes - some £1,300 a year worse off when they come into effect in April. | Opponents of the tax credit changes say they will leave millions of existing recipients - many of whom work but are on low incomes - some £1,300 a year worse off when they come into effect in April. |
| But ministers say that taking into account other changes, such as the introduction of the new national living wage, further increases in the personal tax allowance and an extension of free childcare, the majority of existing claimants will be better off. | But ministers say that taking into account other changes, such as the introduction of the new national living wage, further increases in the personal tax allowance and an extension of free childcare, the majority of existing claimants will be better off. |
| The government is more vulnerable to defeats in the House of Lords, where it has no majority. | The government is more vulnerable to defeats in the House of Lords, where it has no majority. |
| But there have been warnings of a serious constitutional dispute in the lead-up to the votes with one former Conservative leader talking of "consequences" for the appointed chamber if it takes the very rare step of striking down a key part of the government's social and economic programme. | But there have been warnings of a serious constitutional dispute in the lead-up to the votes with one former Conservative leader talking of "consequences" for the appointed chamber if it takes the very rare step of striking down a key part of the government's social and economic programme. |
| Mr Hancock told Radio 4's Today programme the bill was "obviously a financial matter" and should not be blocked by peers. | |
| The measures have been approved on three occasions by the Commons since June but there has been growing unease on the Conservative benches about their impact and calls for Chancellor George Osborne to rethink his approach. | The measures have been approved on three occasions by the Commons since June but there has been growing unease on the Conservative benches about their impact and calls for Chancellor George Osborne to rethink his approach. |
| Shadow chancellor John McDonnell has said Labour would support the government if it delayed the plans and would "not make political capital" out of a full U-turn. | Shadow chancellor John McDonnell has said Labour would support the government if it delayed the plans and would "not make political capital" out of a full U-turn. |
| Mr McDonnell said he had written to Mr Osborne to make clear that if the government changed tack now, Labour would "co-operate" in future efforts to review the tax credit bill, as long as it was done "at the right time and in the right way". | Mr McDonnell said he had written to Mr Osborne to make clear that if the government changed tack now, Labour would "co-operate" in future efforts to review the tax credit bill, as long as it was done "at the right time and in the right way". |
| Education Secretary Nicky Morgan said Labour had no "credible alternative" and the "policy wasn't changing", saying the cabinet was "united" behind the changes. | Education Secretary Nicky Morgan said Labour had no "credible alternative" and the "policy wasn't changing", saying the cabinet was "united" behind the changes. |
| Lib Dem leader Tim Farron said his party's peers were "well within their rights" to try to block the changes as the Conservatives did not have a mandate for them because they were not included in their manifesto. | Lib Dem leader Tim Farron said his party's peers were "well within their rights" to try to block the changes as the Conservatives did not have a mandate for them because they were not included in their manifesto. |
| What are tax credits and what are the changes? | What are tax credits and what are the changes? |
| Tax credits are a series of benefits introduced by the last Labour government to help low-paid families. There are two types: Working Tax Credit (WTC) for those in work, and Child Tax Credit (CTC) for those with children. | Tax credits are a series of benefits introduced by the last Labour government to help low-paid families. There are two types: Working Tax Credit (WTC) for those in work, and Child Tax Credit (CTC) for those with children. |
| Under government proposals, the income threshold for Working Tax Credits - £6,420 - will be cut to £3,850 a year from April. | Under government proposals, the income threshold for Working Tax Credits - £6,420 - will be cut to £3,850 a year from April. |
| In other words, as soon as someone earns £3,850, they will see their payments reduced. The income threshold for those only claiming CTCs will be cut from £16,105 to £12,125. | In other words, as soon as someone earns £3,850, they will see their payments reduced. The income threshold for those only claiming CTCs will be cut from £16,105 to £12,125. |
| The rate at which those payments are cut is also going to get faster. Currently, for every £1 claimants earn above the threshold, they lose 41p. This is known as the taper rate. But from April, the taper rate will accelerate to 48p. | The rate at which those payments are cut is also going to get faster. Currently, for every £1 claimants earn above the threshold, they lose 41p. This is known as the taper rate. But from April, the taper rate will accelerate to 48p. |
| There will be similar reductions for those who claim work allowances under the new Universal Credit. | There will be similar reductions for those who claim work allowances under the new Universal Credit. |
| Read more about the changes | Read more about the changes |
| When they consider the proposals later, peers could be asked to vote on as many as four motions urging a different approach. Most attention has focused on a motion tabled by Liberal Democrat peer Baroness Manzoor "declining to approve" the proposals. | When they consider the proposals later, peers could be asked to vote on as many as four motions urging a different approach. Most attention has focused on a motion tabled by Liberal Democrat peer Baroness Manzoor "declining to approve" the proposals. |
| The Lib Dems have told their 111 peers to vote for the motion, which would effectively send the proposals back to the drawing board, although it is not clear how much support it will attract from Labour and the 176 crossbench members of the Upper House, who are not affiliated to any party. | The Lib Dems have told their 111 peers to vote for the motion, which would effectively send the proposals back to the drawing board, although it is not clear how much support it will attract from Labour and the 176 crossbench members of the Upper House, who are not affiliated to any party. |
| Labour has put forward a separate motion, under the name of Baroness Hollis, calling for the changes to be delayed until a three-year package of transitional financial help has been agreed upon. | Labour has put forward a separate motion, under the name of Baroness Hollis, calling for the changes to be delayed until a three-year package of transitional financial help has been agreed upon. |
| Two other motions, one under the name of crossbench peer Baroness Meacher calling for a pause, and one from the Bishop of Portsmouth urging further consultation have also been tabled. However, it is not clear if they will be voted on. | Two other motions, one under the name of crossbench peer Baroness Meacher calling for a pause, and one from the Bishop of Portsmouth urging further consultation have also been tabled. However, it is not clear if they will be voted on. |
| Parliamentary conventions | Parliamentary conventions |
| Ahead of Monday's proceedings, there has been a heated debate over whether the House of Lords has the authority to oppose the changes. | Ahead of Monday's proceedings, there has been a heated debate over whether the House of Lords has the authority to oppose the changes. |
| The Upper House, whose main function is as a revising chamber, has no powers to amend or block government money bills but the tax credit changes are incorporated in a so-called statutory instrument rather than primary legislation. | The Upper House, whose main function is as a revising chamber, has no powers to amend or block government money bills but the tax credit changes are incorporated in a so-called statutory instrument rather than primary legislation. |
| According to parliamentary records, peers have killed off secondary or delegated legislation supported by the Commons on five occasions since 1945: in 1968, 2000 (twice), 2007 and 2012. | According to parliamentary records, peers have killed off secondary or delegated legislation supported by the Commons on five occasions since 1945: in 1968, 2000 (twice), 2007 and 2012. |
| Former Conservative leader Lord Howard said it was a long-established convention that the Lords did not reject statutory instruments "simply because it disagrees with them" and to do so would be to disregard "centuries of observance". | Former Conservative leader Lord Howard said it was a long-established convention that the Lords did not reject statutory instruments "simply because it disagrees with them" and to do so would be to disregard "centuries of observance". |
| Are you receiving tax credits? Have you been affected by any of the issues raised in this story? You can share your comments and experience by emailing haveyoursay@bbc.co.uk. | Are you receiving tax credits? Have you been affected by any of the issues raised in this story? You can share your comments and experience by emailing haveyoursay@bbc.co.uk. |
| Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: | Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: |
| Or use the form below | Or use the form below |