Government Defeated In The Lords Over Tax Credits

Tax CreditsThe Government tonight has suffered a humiliating defeat of its flagship welfare reform policy as peers voted by 289 votes to 272 to delay tax credit changes until a full review and financial alternatives can be set up for the millions of tax credit claimants that were due to lose up to 10% of their income overnight in April 2016.

Sources suggest that Cameron may well respond in anger and to enforce ‘the supremacy of the Commons’ may well create a Tory majority in the Lords, by creating potentially up to 100 new peers to force through the Tax Credit legislation.

The House of Lords voted against the ‘fatal motion’ proposed that would have effectively seen the end of the legislative journey for the Tax Credits bill.

All eyes are now on Osborne to see whether he will capitulate to the demands of opposers of the bill or whether, as many members of the cabinet indicated before the vote tonight, that there was no way anything was going to change and that ‘the policy is the policy’.

A brief reprieve now for millions of the lowest paid strivers in the country – but how long will it last?