Grayling pleads guilty to hitting the working poor

Tax credit changes mean some families will be better off on benefits, welfare minister admits.

Chris Grayling's startling admission (£) that tax credit changes mean some working families will be better off on benefits is an important moment. The welfare minister has pleaded guilty to the toxic charge that the government is penalising the working poor.

George Osborne's decision to remove tax credits from those who work fewer than 24 hours a week means 212,000 couples with children will lose up to £3,870 a year. Asked by Labour MP Ann Coffey what would happen to a family working 16 hours a week on the minimum wage, Grayling revealed that the weekly income of a couple with two children would drop from £330 to £257. That's significantly less than the £271 a week that they would receive on out-of-work benefits. In a letter to Osborne today, the Child Poverty Action Group warns that the policy puts "470,000 children at risk of being plunged into poverty".

Grayling's defence is that the anomaly will be resolved next year when the Universal Credit replaces all benefits and "makes work pay". Indeed, the same family will be £95 better off under that system. But until then, Ed Miliband has a potent attack line for PMQs. In one move, the government has undermined its claim to be on the side of working families, rather than "welfare families".

The government has suggested that couples will be able to increase their hours to retain the working benefit but this only makes it look even more out of touch. As the Resolution Foundation's Vidhya Alakeson noted: "In today's economy part-time workers are likely to find it extremely difficult to negotiate extra hours in any case." There are already 1.35 million people working part-time because they can't find a full-time job, the highest number since comparable records began in 1992.

Whether or not the Lib Dems secure a significant increase in the personal allowance, this policy will do nothing for those part-time workers who don't earn enough to pay tax. Now, to add insult to injury, the government is clawing back £73-a-week from their families. This may or may not be the long-awaited "10p tax moment". But the creation of a disincentive to work means the government is now failing even on its own terms.

George Eaton is political editor of the New Statesman.

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“Trembling, shaking / Oh, my heart is aching”: the EU out campaign song will give you chills

But not in a good way.

You know the story. Some old guys with vague dreams of empire want Britain to leave the European Union. They’ve been kicking up such a big fuss over the past few years that the government is letting the public decide.

And what is it that sways a largely politically indifferent electorate? Strikes hope in their hearts for a mildly less bureaucratic yet dangerously human rights-free future? An anthem, of course!

Originally by Carly You’re so Vain Simon, this is the song the Leave.EU campaign (Nigel Farage’s chosen group) has chosen. It is performed by the singer Antonia Suñer, for whom freedom from the technofederalists couldn’t come any suñer.

Here are the lyrics, of which your mole has done a close reading. But essentially it’s just nature imagery with fascist undertones and some heartburn.

"Let the river run

"Let all the dreamers

"Wake the nation.

"Come, the new Jerusalem."

Don’t use a river metaphor in anything political, unless you actively want to evoke Enoch Powell. Also, Jerusalem? That’s a bit... strong, isn’t it? Heavy connotations of being a little bit too Englandy.

"Silver cities rise,

"The morning lights,

"The streets that meet them,

"And sirens call them on

"With a song."

Sirens and streets. Doesn’t sound like a wholly un-authoritarian view of the UK’s EU-free future to me.

"It’s asking for the taking,

"Trembling, shaking,

"Oh, my heart is aching."

A reference to the elderly nature of many of the UK’s eurosceptics, perhaps?

"We’re coming to the edge,

"Running on the water,

"Coming through the fog,

"Your sons and daughters."

I feel like this is something to do with the hosepipe ban.

"We the great and small,

"Stand on a star,

"And blaze a trail of desire,

"Through the dark’ning dawn."

Everyone will have to speak this kind of English in the new Jerusalem, m'lady, oft with shorten’d words which will leave you feeling cringéd.

"It’s asking for the taking.

"Come run with me now,

"The sky is the colour of blue,

"You’ve never even seen,

"In the eyes of your lover."

I think this means: no one has ever loved anyone with the same colour eyes as the EU flag.

I'm a mole, innit.