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| Tax credits: Lords challenge defended by Labour and Lib Dems | |
| (35 minutes later) | |
| Labour and the Lib Dems have defended their challenge to tax credit cuts as ministers warned of taking an "unprecedented constitutional path". | |
| The House of Lords will vote on motions that could delay the controversial cuts or scupper them altogether. | |
| Ministers say peers do not have the right to block financial measures approved by the House of Commons. | |
| But Labour's shadow welfare secretary Owen Smith said such arguments were a "total sideshow". | |
| Cabinet Office minister Matthew Hancock said Chancellor George Osborne was in "listening mode" over the cuts. | |
| But the bill was "obviously a financial matter" and should not be blocked by peers, he added. | |
| 'Comradely' Lib Dems | |
| This was dismissed by Mr Smith, whose party is putting forward a motion calling for a delay in the reforms while a package of financial assistance is drafted. | |
| He told BBC Radio 4's Today programme: "We will not be allowing the Tories to present this as some sort of unjust use of the House of Lords." | |
| The Liberal Democrats have gone further than Labour, tabling a so-called "fatal motion" calling for the welfare changes to be scrapped. | |
| Lib Dem leader Tim Farron said his party's peers would also support the Labour motion "in comradely fashion". | |
| He said the government had "no mandate" for the reforms, adding: "We think it's right to use the mechanisms available to overturn this proposal." | |
| 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. |
| Lib Dem peer Baroness Kramer said the idea of a "constitutional bar" was "complete and utter rubbish". | |
| She claimed the Conservatives were trying to make the issue a constitutional one because they have "lost the argument". | She claimed the Conservatives were trying to make the issue a constitutional one because they have "lost the argument". |
| 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. |
| But Education Secretary Nicky Morgan said Labour had no "credible alternative" and the "policy wasn't changing", saying the cabinet was "united" behind the changes. | But Education Secretary Nicky Morgan said Labour had no "credible alternative" and the "policy wasn't changing", saying the cabinet was "united" behind the changes. |
| 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. | The Lib Dems have told their 111 peers to vote for the motion, which would effectively send the proposals back to the drawing board. |
| However, it is not clear how much support the Manzoor motion will attract from Labour and the 176 crossbench members of the Upper House. | However, it is not clear how much support the Manzoor motion will attract from Labour and the 176 crossbench members of the Upper House. |
| Labour's motion, under the name of Baroness Hollis, calls 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 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 |