Seeing the light

Fair Isle's two lighthouses have been central to the commmunity for the last 116 years

During these long winter nights, one of the things I find myself noticing more are the island’s lighthouses. Fair Isle’s South Lighthouse is less than half a mile from my house, and lying in bed I can see the beam against the walls: four flashes, one after the other, repeated every 30 seconds.

There are two lighthouses on the island, one at the north end and one the south, just about three miles apart. The north light covers the water between Fair Isle and Shetland, and the south covers that between here and Orkney. These are both very dangerous stretches of sea, and the lights have undoubtedly saved many lives over the years.

The south lighthouse was first lit about 116 years ago, in January 1892, and the north light later that year. They were both designed by the brothers David and Charles Stevenson, cousins of the writer Robert Louis Stevenson, and part of the renowned family of lighthouse engineers. They are noticeably different in size – the tower at the south is 26 metres high, while that at the north is just 14. But sitting atop 200 foot cliffs it is well elevated above sea level. Both lighthouses also had fog horns for warning ships in poor weather.

The construction of the lighthouses in Fair Isle had been suggested decades before they were eventually built, but it took many more ships (and lives) to be lost before the plans eventually came to fruition. An incredible number of vessels ended their days on the rocks around the island, often several ships in a single year. And while the islanders did their best to rescue sailors, they did so at considerable risk to themselves, and were not always successful.

It is true though that wrecks did provide a valuable source of timber to the island, and many lost cargoes found their way into people’s homes. There were also occasional rewards for the rescue of stricken mariners, including £100 that was sent to the islanders after they assisted and helped to repair the Copenhagen ship, Dronning Louise, in 1884. When the lighthouses began their work, this source of wood and other goods was drastically reduced.

One of the great benefits of the lighthouses was that they brought extra people in to the community. For much of the twentieth century, three keepers and their families lived at each light – a substantial boost to the population.

This, though, has changed. The north light was automated in 1983, with engineers at the south providing cover when needed. Then, 15 years later, the south light too was automated. It was the last Scottish lighthouse to be manned. Since then part of the south light building has been converted into two flats by the National Trust, so once again people are living there.

In more recent years, another part of the lighthouse story has ended. The foghorns – once familiar sounds to everyone on the island – have been switched off. For those people living in the lighthouse flats, it was, perhaps, a relief.

The lights themselves have changed too. The beam has been altered to make it less bright as it passes over the land. Until recently, folk were able to find their way home in the dark, taking steps only as the bright light swept across their path. Now it is less conspicuous, less direct, but still there all the same.

In some peculiar way the light is rather comforting. It comes and goes against the wall, steady and familiar. I am glad to see it there.

Malachy Tallack is 26 and lives in Fair Isle. He is a singer-songwriter, journalist, and editor of the magazine Shetland Life.
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Q&A: What are tax credits and how do they work?

All you need to know about the government's plan to cut tax credits.

What are tax credits?

Tax credits are payments made regularly by the state into bank accounts to support families with children, or those who are in low-paid jobs. There are two types of tax credit: the working tax credit and the child tax credit.

What are they for?

To redistribute income to those less able to get by, or to provide for their children, on what they earn.

Are they similar to tax relief?

No. They don’t have much to do with tax. They’re more of a welfare thing. You don’t need to be a taxpayer to receive tax credits. It’s just that, unlike other benefits, they are based on the tax year and paid via the tax office.

Who is eligible?

Anyone aged over 16 (for child tax credits) and over 25 (for working tax credits) who normally lives in the UK can apply for them, depending on their income, the hours they work, whether they have a disability, and whether they pay for childcare.

What are their circumstances?

The more you earn, the less you are likely to receive. Single claimants must work at least 16 hours a week. Let’s take a full-time worker: if you work at least 30 hours a week, you are generally eligible for working tax credits if you earn less than £13,253 a year (if you’re single and don’t have children), or less than £18,023 (jointly as part of a couple without children but working at least 30 hours a week).

And for families?

A family with children and an income below about £32,200 can claim child tax credit. It used to be that the more children you have, the more you are eligible to receive – but George Osborne in his most recent Budget has limited child tax credit to two children.

How much money do you receive?

Again, this depends on your circumstances. The basic payment for a single claimant, or a joint claim by a couple, of working tax credits is £1,940 for the tax year. You can then receive extra, depending on your circumstances. For example, single parents can receive up to an additional £2,010, on top of the basic £1,940 payment; people who work more than 30 hours a week can receive up to an extra £810; and disabled workers up to £2,970. The average award of tax credit is £6,340 per year. Child tax credit claimants get £545 per year as a flat payment, plus £2,780 per child.

How many people claim tax credits?

About 4.5m people – the vast majority of these people (around 4m) have children.

How much does it cost the taxpayer?

The estimation is that they will cost the government £30bn in April 2015/16. That’s around 14 per cent of the £220bn welfare budget, which the Tories have pledged to cut by £12bn.

Who introduced this system?

New Labour. Gordon Brown, when he was Chancellor, developed tax credits in his first term. The system as we know it was established in April 2003.

Why did they do this?

To lift working people out of poverty, and to remove the disincentives to work believed to have been inculcated by welfare. The tax credit system made it more attractive for people depending on benefits to work, and gave those in low-paid jobs a helping hand.

Did it work?

Yes. Tax credits’ biggest achievement was lifting a record number of children out of poverty since the war. The proportion of children living below the poverty line fell from 35 per cent in 1998/9 to 19 per cent in 2012/13.

So what’s the problem?

Well, it’s a bit of a weird system in that it lets companies pay wages that are too low to live on without the state supplementing them. Many also criticise tax credits for allowing the minimum wage – also brought in by New Labour – to stagnate (ie. not keep up with the rate of inflation). David Cameron has called the system of taxing low earners and then handing them some money back via tax credits a “ridiculous merry-go-round”.

Then it’s a good thing to scrap them?

It would be fine if all those low earners and families struggling to get by would be given support in place of tax credits – a living wage, for example.

And that’s why the Tories are introducing a living wage...

That’s what they call it. But it’s not. The Chancellor announced in his most recent Budget a new minimum wage of £7.20 an hour for over-25s, rising to £9 by 2020. He called this the “national living wage” – it’s not, because the current living wage (which is calculated by the Living Wage Foundation, and currently non-compulsory) is already £9.15 in London and £7.85 in the rest of the country.

Will people be better off?

No. Quite the reverse. The IFS has said this slightly higher national minimum wage will not compensate working families who will be subjected to tax credit cuts; it is arithmetically impossible. The IFS director, Paul Johnson, commented: “Unequivocally, tax credit recipients in work will be made worse off by the measures in the Budget on average.” It has been calculated that 3.2m low-paid workers will have their pay packets cut by an average of £1,350 a year.

Could the government change its policy to avoid this?

The Prime Minister and his frontbenchers have been pretty stubborn about pushing on with the plan. In spite of criticism from all angles – the IFS, campaigners, Labour, The Sun – Cameron has ruled out a review of the policy in the Autumn Statement, which is on 25 November. But there is an alternative. The chair of parliament’s Work & Pensions Select Committee and Labour MP Frank Field has proposed what he calls a “cost neutral” tweak to the tax credit cuts.

How would this alternative work?

Currently, if your income is less than £6,420, you will receive the maximum amount of tax credits. That threshold is called the gross income threshold. Field wants to introduce a second gross income threshold of £13,100 (what you earn if you work 35 hours a week on minimum wage). Those earning a salary between those two thresholds would have their tax credits reduced at a slower rate on whatever they earn above £6,420 up to £13,100. The percentage of what you earn above the basic threshold that is deducted from your tax credits is called the taper rate, and it is currently at 41 per cent. In contrast to this plan, the Tories want to halve the income threshold to £3,850 a year and increase the taper rate to 48 per cent once you hit that threshold, which basically means you lose more tax credits, faster, the more you earn.

When will the tax credit cuts come in?

They will be imposed from April next year, barring a u-turn.

Anoosh Chakelian is deputy web editor at the New Statesman.