Row after peers block shake-up
WELFARE: George Osborne last night criticised “unelected” Labour and Liberal Democrat peers for blocking the Government’s tax credit plans as David Cameron pledged a “rapid review” into the constitutional fallout of the bruising result.
In a rare move, the upper house rejected the Government’s welfare reform.
GEORGE OSBORNE last night criticised “unelected” Labour and Liberal Democrat peers for blocking the Government’s tax credit plans as David Cameron pledged a “rapid review” into the constitutional fallout of the bruising result.
In a rare constitutional moment, the upper house last night rejected the welfare reform which had been put forward by the Government, despite MPs voting in favour on three separate occasions in the House of Commons.
“David Cameron and I are clear that this raises constitutional issues that need to be dealt with,” the Chancellor said.
“However, it has happened, and now we must address the consequences of that. I said I would listen and that’s precisely that I intend to do.
“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.”
Peers defied calls to respect a century-old convention that the unelected upper chamber does not block financial measures approved by the Commons, sparking claims of a “constitutional outrage”.
A No10 spokesman said: “The Prime Minister is determined we will address this constitutional issue.
“A convention exists and it has been broken. He has asked for a rapid review to see how it can be put back in place.”
Labour’s Baroness Hollis put forward a motion which means peers will not back the Bill until the Government puts in place transitional measures to protect workers for three years.
This won by 289 votes to 272, majority 17. Unlike the House of Commons the Conservatives do not have a majority in the Lords, with 249 peers.
Labour has 213, the Lib Dems have 112, there are 25 bishops and 176 cross-benchers. Despite the Conservative party insisting members fly back from overseas to take part in the critical vote, they were unable to produce the numbers to ensure their tax credits plan passed without major changes.
The Lib Dems, who criticised the Conservatives for not spelling out their tax credit plans in detail in their manifesto, called for a ‘fatal motion’ to kill off the proposal, which was defeated 310 votes to 99.
Crossbencher Baroness Meacher, who wanted the Government to consider the Institute for Fiscal Studies’ report that families would be £1,300 worse off a year on average before the plan could be supported by the peers, was also backed in the Lords.
Labour peer Glenys Thornton of Manningham, Bradford, who voted to accept Baroness Hollis’s amendment, said because Labour’s motion was not ‘fatal’ like the one the Lib Dems presented, they gained ground with crossbenchers and displayed a respect for the right of the Government to make legislation and try to pass it through Parliament.
Liberal Democrat peer Baroness Kath Pinnock, who is also a Kirklees councillor, said it was a shame that Labour had not voted to back their ‘fatal motion’, as when the two parties have teamed up they made a powerful force in the House of Lords.
She said: “When Labour and the Lib Dems have voted together when we did on the child care Bill, we defeated the Government.
“I’m really disappointed with Labour because Jeremy Corbyn made it really clear that they would be voting against it in the Commons, so why would you not support the exact same thing in the Lords?”