Ed Miliband speaking at his weekly press conference in October Source: Getty Images
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Mehdi Hasan's PMQs review: MPs fiddle over borders as Europe burns

Miliband decided to go for Cameron over May but failed to land any significant blows.

PMQs was a disappointment. Few jokes, even fewer good lines - and no "gotcha" questions from Ed Miliband. Bizarrely, the Labour leader decided to devote all his six bites of the cherry to the ongoing border control row - despite the fact that, at the time of writing, Yvette Cooper has just kicked off a Labour opposition-day debate on the subject. And despite the fact that the eurozone is in meltdown, Italy's cost of borrowing has hit a new record and economic armageddon seems to be right round the corner. Oh, and despite the fact that Miliband didn't seem to be equipped with a set of killer questions. With Cooper sitting behind him, the Labour leader began with:

Can the Prime Minister tell us how many people entered the UK under the Home Secretary's relaxed border controls?

Cameron dodged the question, preferring to reel off a list of statistics ("The figures I do have are that the number of people arrested was up by 10 per cent...").

Later, Miliband asked:

Can he now confirm how many UK border staff are going to be cut under his government?

To which Cameron, having prepared for this particular question, responded by pointing out that there would still be 18,000 employees at the end of this parliament: "The same number as in 2006 when he [Miliband] was sitting in the Treasury and determining the budget". Ouch.

It was left to Labour MP Chris Leslie, later in the session, to provide a more challenging and interesting intervention, when he called on the Prime Minister to publish all the relevant Home Office documents on orders given to the UK Border Agency over the summer. Cameron didn't really have an answer ("All these issues will be aired...") but was able to joke that Leslie was trying to make up for ground "lost" by Miliband in the earlier exchange.

Miliband did have a few good-ish lines:

A month ago, he [Cameron] gave a speech called Reclaiming our Borders. . . His Home Secretary was busy relaxing our borders.


He has been the Prime Minister for 18 months He cant keep saying it has nothing to do with him. It's his responsibility.

He also provided the Commons with a potentially-damning quote from the Home Secretary, from her opposition days:

I'm sick and tired of government ministers who simply blame other people when things go wrong.

I suspect May was squirming in her seat. Overall, however, what was striking was the Prime Minister's unflinching, wholehearted support for his Home Secretary throughout PMQs. As he pointed out, in his exchange with the Leader of the Opposition:

The simple fact is that the head of the UK border agency, Rob Whiteman. . . he said this: 'Brodie Clark admitted to me on the 2 November that on a number of occasions this year he authorized his staff to go further than ministerial action. I therefore suspended him from his duties. . . It is unacceptable that one of my senior official went further than what was approved.'

He also told the Commons that he backed the "suspension" of Clark (who has denied Theresa May's claims).

We can assume then that the PM has been well-briefed by May and is convinced that she hasn't done anything wrong - and, crucially, can survive this particular political crisis. Otherwise, I suspect, he would have hung her out to dry. As Sunday Telegraph political editor Patrick Hennessy noted on Twitter:

Contrast Cam's support for May - wants to cut immigration - with him saying Fox "has done" a good job at #PMQs before Fox quit

Cameron was also able to end on a high by once again quoting Maurice Glasman, the Blue Labour peer, ally and adviser to Miliband, who said earlier this year that Labour "lied" about immigration.

The Labour leader might have been thinking to himself, "With friends like these. . ."

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

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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.