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Government sees off rebellion and wins vote to cut working tax credits Government sees off rebellion to win vote on working tax credit cuts
(35 minutes later)
The government has comfortably won a Commons vote on a controversial proposal to cut working tax credits.The government has comfortably won a Commons vote on a controversial proposal to cut working tax credits.
MPs approved the cuts by 325 votes to 290, a majority of 35. The government’s victory was bigger than expected, given that the Democratic Unionist party had pledged to vote with the SNP and Labour against the plans. MPs approved the cuts by 325 votes to 290, a majority of 35. While the government was expected to win the vote, the victory was bigger than anticipated given that the Democratic Unionist party had pledged to vote with the Scottish National party and Labour against the plans. There had also been speculation that five Conservative MPs would vote against the government, which has a working majority of 16. But in the event, only two did so: David Davisand Stephen McPartland.
Ministers were expected to win the vote, but there had been speculation it might be close. The government’s working majority is 16. Labour attacked the proposals, introduced in the chancellor’s summer budget, as “shameful” and warned they would leave millions of households out of pocket. The government plans to lower the level of earnings above which tax credits are withdrawn, from £6,420 to £3,850, after April 2016. It also intends to speed up the rate at which the benefit is lost as pay rises.
Labour attacked the proposals, introduced in the chancellor’s summer budget, as “shameful” and warned they would leave millions of households out of pocket. The government plans to cut the earnings level above which tax credits are withdrawn from £6,420 to £3,850 after April 2016, as well as speeding up the rate at which the benefit is lost as pay rises. Frank Field, a Labour former welfare reform minister, said the issue would rumble and “catch fire” in constituencies when the cuts were made.
Frank Field, a Labour former welfare reform minister, said the issue would “rumble” and “catch fire” in the constituencies when the cuts are made. But the Treasury minister Damian Hinds said the plans were crucial to the government’s wider ambition to tackle low pay. The changes were expected to save £4.4bn in 2016/17
But treasury minister Damian Hinds defended the plans as crucial to the government’s wider ambition to tackle low pay. The changes are expected to save £4.4bn in 2016/17. In a speech at the Trades Union Congress in Brighton earlier, new Labour leader, Jeremy Corbyn, made it clear that his party would oppose the government’s welfare plans and sought to draw a clear distinction between Labour and the Conservatives.
In a speech at the Trades Union Congress in Brighton earlier, new Labour leader, Jeremy Corbyn, had made it clear that Labour would oppose the government’s welfare plans and sought to draw a clear distinction between Labour and the Conservatives.
“They call us deficit deniers; they spend billions cutting taxes for the richest families and for the most profitable businesses. What they are is poverty deniers.“They call us deficit deniers; they spend billions cutting taxes for the richest families and for the most profitable businesses. What they are is poverty deniers.
“They are ignoring the growing queues at food banks, they are ignoring the housing crisis, they are cutting tax credits … Let’s be clear: austerity is actually a political choice that this government is taking and they are imposing it on the most vulnerable and poorest in society.”“They are ignoring the growing queues at food banks, they are ignoring the housing crisis, they are cutting tax credits … Let’s be clear: austerity is actually a political choice that this government is taking and they are imposing it on the most vulnerable and poorest in society.”