Chancellor faces up to Lords defeat

The British Chancellor, George Osborne, has promised he will act on the concerns about the power of the House of Lords relating to a vote on tax credit cuts, in light of his peers demanding major changes by the government.

The Conservative government were defeated twice in the House of Lords, with votes related to tax credits, but Osborne vowed to try to press on regardless in order to try to save billions from welfare.

In light of the latest in a line of House of Lords votes that have gone against the government, Downing Street has expressed its intention to review the conventions in the House of Lords, while Tory MP’s have been outraged that the Lords can interfere with active policies already accepted by elected MPs.

The full details of the transitional relief structure for tax credit will be unveiled in November, as the Chancellor delivers his Autumn Statement, in the meantime the government will try to find a solution in order to cover the £4.4 billion required to fund the climb down.


Tax credits were a Labour introduction, brought in to help young, impoverished families, but the Tories hope to cut the threshold for receiving the credits, in a move that will, according to critics, deprive households of up to £1,300 a year.

The government, often accused of favouring the wealthy and side-lining the poor, claim that the move is vital in order to tackle the growing deficit, and to fund other initiatives such as the new national living wage.

The two votes in the House of Lords mean that the proposed move will be delayed until full investigations of the overall financial implications are carried out, and full financial redress is given to those the Tories hope to cut off.