THE HOUSE OF LORDS has announced that they will not be accepting the tax credit cuts , after they voted today (Wednesday) to delay them and also compensate those who have been affected in full.
“Peers voted by 289 votes to 272 to provide full financial redress to the millions of recipients affected.
They earlier inflicted a second defeat by backing a pause until an independent study of the impact was carried out.
George Osborne said he would heed the outcome of the vote, but said it raised “constitutional issues”.
The chancellor criticised “unelected Labour and Lib Dem lords” for defying the will of the elected House of Commons, but said he would set out how the proposed changes to tax credits would be modified in response in next month’s Autumn Statement.
“I said I would listen and we will listen to the concerns that have been raised,” he said.
“I believe we can achieve the same goal of reforming tax credits, saving the money we need to save to secure our economy, while at the same time helping in the transition.. I’m determined to deliver that lower welfare economy the British people want to see.”
But the BBC’s political editor Laura Kuenssberg said it was a “very bad result” for the government but it was not clear what it meant for recipients of tax credits.
Labour reacted by calling for a “full u-turn” over the tax credit changes.
‘Powerful message’
On a dramatic evening in the House of Lords, peers threw out a “fatal motion” tabled by the Lib Dems, which would have blocked the changes entirely.
If it had passed, the Lib Dem motion would have stopped the £4.4bn cuts to tax credits in their tracks and sent the proposals back to the drawing board.
But peers backed calls, by 307 votes to 277, led by crossbench peer Baroness Meacher for the cuts to be put on hold pending an independent analysis.
They also supported a Labour plan to provide transitional financial support for at least three years for those likely to be affected.” sourced from the BBC News Website.
HOUSE OF LORDS: THE GOVERNMENT IS LYING
The Conservative Party has chose to make large benefit cuts, in particular for tax credits, as a ‘solution’ to solve the economic crisis. They stated that those in benefit of tax credit would no longer need to receive it, as the minimum wage rate was to increase. These cuts received a harsh reaction in the House of Lords. The House of Lords explained that the governments austerity to be made with the help of tax credits was not realistic and 3 million low income families would be dragged into becoming poorer. As a result the Lord decided to delay this for three years.
The plan was to affect a total of 14,300 Turkish families living in just the Haringey area of North London and the cuts if made would total £16,950,000,00.
In the general area of London, those families in receipt of working tax credit benefit totals to 372,900,000,00. For those families with low incomes the bad news would be that their tax credit benefit would amount to almost £372,900,000,00.
“THE GOVERNMENT IS NOT SUPPORTING THE WORKING CLASS”
During the Liberal Democrat party coalition period, those who worked more would be receiving more pay as a result of help from the government and works were in process to do so. .
Liberal Democrat Leader for Haringey Council, Gail Engert explained she was against the cuts before the House of Lords Vote continued by saying: “The changes to tax credits will hammer families in Haringey. The change to tax credits completely undermines any claim the Conservatives have of being on the side of working families.
“What makes this even worse is that children in our Haringey will now be forced to live in poorer households, reducing their life chances and making it harder for their parents to make ends meet.
“Study after study have shown that the Conservative’s claim to be supporting low income families through a minimum wage increase nowhere near make up for these cuts. It’s time for them to come clean and be honest with those doing the right thing and going out to work.
“I am pleased that Lib Dems nationally are opposing the cuts to tax credits. We fought hard in the Coalition Government to ensure that work would always pay more than benefits. It is disgraceful that the Conservatives are now undermining this good work.”
THE HOUSE OF LORDS HAVE REJECTED, THREE YEARS DELAY!
While the Labour and Liberal Democrat Party showed a strong reaction to the cuts, the government was faced with a harsh defiance from the House of Lords. The conservatives arrived at the House of Lords, defending that the Lords would not be able to reject the cuts, they are now preparing a new budget for the cuts. Conservative Party MP Boris Johnson said: “The Lords are pushing their luck.”, the House of Lords explained that the public trusts them and have come this decision after receiving letters from them. Several examples of letters from low-income families were put forward.
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WHAT DOES THE PUBLIC SAY?
Our Turkish Editor, Yasemin Bakan spoke to members of the public and asked their thoughts on the tax credit benefit cuts..
CİHANGİR SOBE
“TAX CREDIT, IS HELP FOR THE WORKING CLASS”
“The Conservative governments aim, like all other right-winged governments do use the economic crisis as an excuse. They find a lead in the budget and this time it was to cut the help of those who in need of it. To create derivation in a workplace, you make redundant all the workers first. The help being given to those in need is being seen as a financial loss. If the government cuts those benefits, their costs reduce, their profit increases and the gap in our budget closes, is how they see it. And their first aim is to cut the benefits of the poor, the special-need/disabled and the jobless from receiving their benefit. Working Tax Credit is to help support those who are working. To support those who work and receive a basic wage and stop their motivation to work from falling. Yet now the government is cutting this benefit.”
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BAYRAM KÖMÜR
“MY BENEFIT HAS BEEN CUT, I COULD LOSE MY HOME”
“I used to sign on. I used to get paid. I’m 67 years-old. They wanted a doctors report from the Job Centre. I got the doctors report. They made me sign a paper, it has been 8 months and I’m still waiting. I’m living in flat rented from the Housing Association. Now that my benefit has been cut and I’m not able to pay my rent, I could risk being evicted from where I stay. It’s affected my psychological state. I’m worried I’m going to lose my home. I don’t have any other income or assets. That benefit kept me standing. That was my only income. Now that’s been cut, I don’t know what to do. They are finding work at the job centre and sending me there. I’ve looked for work too. But they say: “I’m not going to deal with you after this age.” they don’t want to employ me. I’m in a very hard situation. I’ve got a lot of problems. It’s not just us, there are loads of people we see at the job centre. People who having a leg or arm that’s been amputated and they send them to look for work and are cutting their benefits. There are honestly a lot of people who have been left deprived among those who really do need the benefit.”
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LEYLA ŞAHİN
“THERE IS AN UNJUSTIFIED CUT”
“Before this government came into power, people were able to receive more help. But now they are cutting the benefits of the people who really do need it. But who needs what help is a topic that can be argued. Of course there are people who claim the benefit and use the money to open shops or stores. On the other hand, there are people who really do need it and are being deprived of the help. There isn’t a balance. The scales isn’t weighing out right. There is an unjustified cut. People who be monitored by doctor check-ups as to whether or not they really need this benefit. But unfortunately the NHS doctors here are very judge-mental. “Lift your hand up, lift your arm up” is how they check you and then it’s “Okay, you can work..” and give you your report.”
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WHAT IS TAX CREDIT?
Tax credit isn’t something that is associated with its name and with tax. It is help from the government. During the ruling of the Labour Party, they aimed for this help to be also given to working-families receiving a low wage. There are two types of tax credit: one is Working Tax Credit, help given to workers and the other is Child Tax Credit, help given to working-families with children.
WHO CAN RECEIVE WORKING TAX CREDIT?
The idea of this help is to lead people not to receive more help or benefits, but to the lead them to work more. For example, if you are single then you must work at least 16 hours a week. The highest annual wage they can earn is £13,253. If this person works 16 hours and is earning less than £6,420 then the government completes this by giving them the benefit of Working Tax Credit.
WHO CAN RECEIVE CHILD TAX CREDIT?
To receive this benefit, you must have at least one child. You do not need to be in employment. For example: If you have one child and earn up to £25,000 you can receive this benefit. At the same time if you receive tax credit and earn less than £6,420 then you can still have the right to claim child tax credit.
WHAT’S THE PLAN CHANGE?
Those who receive less than £6,420 and receive the benefit will no longer be eligible and to be able to apply you must earn less than £3,850. This is the change that wants to be put in place.
