Daily Star’s tacit support for EDL is no surprise

It could be a good thing – at least we now know where they stand.

Wednesday's front page of the Daily Star has been widely seen as an endorsement of the English Defence League. Roy Greenslade of the Guardian called it "a clear piece of propaganda on behalf of the EDL", while the Independent's Ian Burrell asked, "Has the Daily Star decided to back the EDL?"

It's just a coincidence, of course, that Richard Desmond should moot the EDL's spiritual home of Luton as the base for his newspapers, but it couldn't be better timing. Who knows? Maybe the EDL will hold a "Welcome to Luton" street party for Star hacks when they arrive at work for the first time in Bedfordshire.

My fellow media blogger Five Chinese Crackers expresses the view of many of us who viewed the Star as just a worthless comic and not worthy of serious criticism, saying: "I hardly ever looked at the Star, since it exists primarily as a vehicle for selling pictures of tits to stupid people," but admits we're going to have to start taking it seriously now.

This is, after all, a national newspaper – of which there are only ten – aligning itself with an organisation that many consider to be odious, hostile to freedom and deeply unpleasant. Of course, as many other bloggers have documented down the years, Daily Star headlines often bear little or no relation to the stories below, and it's a similar case with this one. The EDL boss saying "We aren't ruling it out" is alchemised into "EDL to become political party". No matter. The Star has its story, and backs it up with a remarkably chummy editorial column.

It's been coming for a while. Back in November, Hope Not Hate wrote politely to the Star asking the paper to tone down its coverage of Muslims. It came on the back of a Star poll which found that 98 per cent of readers feared Britain was becoming a Muslim state – the most recent poll found that 98 per cent of readers, perhaps not entirely unrelatedly, backed the policies of the EDL.

At the time, I looked at the reaction on nationalist and EDL message boards and blogs, and found it was highly positive. One blogger wrote, delightedly, "This is the first article I have read, from both the national and regional media, that hasn't been critical of the EDL," and hoped for more in the future. It would seem that wish has been granted.

It seems an odd decision, on the face of it, from the Star to be so matey with the EDL. Perhaps 98 per cent of Star readers really do support the EDL; and phone polls are entirely representative of a readership's feelings on any particular subject. Perhaps there is a lot of latent support for the EDL from ordinary Brits who feel angry at what they see as the Islamification of their country, based on the kind of stories they read in the Star (and elsewhere, in slightly more complicated terms). Perhaps it's just a way of targeting a narrow demographic as a way of tunnelling out of the general slump in newspaper sales, abandoning broad appeal in favour of a particular type of reader.

As I said last week, newspapers may be reflecting their readerships, but if they're just confirming prejudices rather than reporting what's actually going on, that erodes the credibility of all newspapers even more.

If you look back further, this was a newspaper that would have had a "Daily Fatwa" edition published, had it not been for a revolt by the newsroom's union chapel. So, this isn't a new flirtation, but perhaps rather a "coming out" by the Star, and perhaps is to be welcomed by the rest of us. At least we know what we're dealing with now, and it's out in the open. At least we know where they stand.

Patrolling the murkier waters of the mainstream media
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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.