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Tax credit cuts: what you need to know about the Lords vote Tax credit cuts: what you need to know about the Lords vote
(about 5 hours later)
What’s happening on Monday?What’s happening on Monday?
Peers are set to vote on whether to delay or scupper the government’s controversial plans to cut tax credits in a series of crucial votes in the House of Lords.Peers are set to vote on whether to delay or scupper the government’s controversial plans to cut tax credits in a series of crucial votes in the House of Lords.
Why are the tax credit plans controversial?Why are the tax credit plans controversial?
Opponents of George Osborne’s plans say they will leave millions of existing recipients – many of whom are in work but on low incomes – about £1,300 a year worse off when they come into force in April. However, the chancellor insists this is offset by other tax reductions and an increase in the minimum wage to £9 by 2020.Opponents of George Osborne’s plans say they will leave millions of existing recipients – many of whom are in work but on low incomes – about £1,300 a year worse off when they come into force in April. However, the chancellor insists this is offset by other tax reductions and an increase in the minimum wage to £9 by 2020.
What will the Lords vote on?What will the Lords vote on?
Peers will hold up to four votes that could either delay the tax credit plans or derail them entirely. They are, in order:Peers will hold up to four votes that could either delay the tax credit plans or derail them entirely. They are, in order:
Related: Cameron lied about tax credits to win the general election, peers told - Politics live
The fatal motion: This motion, tabled by Liberal Democrat peer Zahida Manzoor, would sound the death knell for Osborne’s tax credit plans. However, it is unlikely to succeed because Labour is not whipping its peers to support it.The fatal motion: This motion, tabled by Liberal Democrat peer Zahida Manzoor, would sound the death knell for Osborne’s tax credit plans. However, it is unlikely to succeed because Labour is not whipping its peers to support it.
Molly Meacher’s motion: This motion would delay the cuts until the government spells out how it will help low-paid workers. Meacher, the crossbench peer behind the motion, is not expected to force a vote if the government says it will produce a report highlighting the effect of the tax credit changes on different income groups.Molly Meacher’s motion: This motion would delay the cuts until the government spells out how it will help low-paid workers. Meacher, the crossbench peer behind the motion, is not expected to force a vote if the government says it will produce a report highlighting the effect of the tax credit changes on different income groups.
A motion to be tabled by Patricia Hollis, the former Labour minister: This is the most dangerous motion for Downing Street because it would force the chancellor to go back to the drawing board. It would halt the cuts until the government produces a scheme to compensate low-paid workers for three years.A motion to be tabled by Patricia Hollis, the former Labour minister: This is the most dangerous motion for Downing Street because it would force the chancellor to go back to the drawing board. It would halt the cuts until the government produces a scheme to compensate low-paid workers for three years.
The motion of regret: Voting for this motion, to be tabled by the bishop of Portsmouth, Christopher Foster, would allow peers to register their opposition without disrupting the government’s plans. Unsurprisingly, the government is hoping that crossbench peers will support this motion.The motion of regret: Voting for this motion, to be tabled by the bishop of Portsmouth, Christopher Foster, would allow peers to register their opposition without disrupting the government’s plans. Unsurprisingly, the government is hoping that crossbench peers will support this motion.
How is the Queen involved?How is the Queen involved?
The government is more vulnerable to defeats in the House of Lords because it has no majority. Some Conservatives have therefore suggested that the Lords will be flooded with Tory appointees if peers overturn the tax credit plans.The government is more vulnerable to defeats in the House of Lords because it has no majority. Some Conservatives have therefore suggested that the Lords will be flooded with Tory appointees if peers overturn the tax credit plans.
However, this has prompted warnings from constitutional experts that such a move would be “uncomfortable” for the Queen because she would have to approve a series of partisan appointments.However, this has prompted warnings from constitutional experts that such a move would be “uncomfortable” for the Queen because she would have to approve a series of partisan appointments.
Meg Russell, director of University College London’s constitution unit, told the Times: “For the prime minister to propose a large number of partisan appointments in order to rebalance the [Lords] could prove awkward for the monarch, drawing her into the controversy in a very uncomfortable way.”Meg Russell, director of University College London’s constitution unit, told the Times: “For the prime minister to propose a large number of partisan appointments in order to rebalance the [Lords] could prove awkward for the monarch, drawing her into the controversy in a very uncomfortable way.”
Where does Labour stand on all this?Where does Labour stand on all this?
Labour’s shadow chancellor, John McDonnell, said on Sunday that the party would support the government if it delayed the tax credit plans. He told the BBC’s Andrew Marr Show that Labour would “not make political capital” out of a U-turn.Labour’s shadow chancellor, John McDonnell, said on Sunday that the party would support the government if it delayed the tax credit plans. He told the BBC’s Andrew Marr Show that Labour would “not make political capital” out of a U-turn.