For Louise Mensch, Corby was nothing more than a stepping stone

Labour are poised to take control of a constituency where voters feel duped and used by their previous MP's time in office.

"If I had to sum up Corby in a single word, pride is the one I would use." So said Louise Bagshawe - now Mensch - in her maiden speech to Parliament. Two years later, with Mensch having left Northamptonshire for New York and a by-election called for this week, that word, pride, is absent when I meet with two young Corbyites to chat about their former MP.

“She was voted in off the back of people demanding change – Phil Hope was caught up in the expenses scandal – but we never saw that,” says Patrick Tierney, a 22-year-old politics graduate born and raised in the town. “From day one, people saw that she wasn’t committed. She seemed distant, and then for her to be so visible in the media, that didn’t go down too well. You’d overhear conversations in the pub or at the bus stop, people saying, ‘What does she think she’s doing? She’s a laughing stock’. She’d use buzzwords on Twitter, talk about Corby’s Scottish heritage, but when it came down to the nitty gritty there wasn’t much of a connection made.”

Liam Keith, a 27-year-old who works at the local video shop in town, agrees. “For a backbench MP that nobody had heard of before, she became very famous, very quickly. She was on Have I Got News For You and embarrassed herself a bit sitting next to Jonny Rotten on Question Time, but there was never any mention of what she was actually doing for Corby,” he says. “I followed her on Twitter. She always talked about ‘Corby Pride’, but she didn’t really understand the people of the town.”

“I never once saw her in the flesh,” he adds. “Most people feel that she was very much only here when she had to be.” This feeling of disconnection runs deep through Corby. One of David Cameron’s A-list candidates, Mensch, Oxford graduate, author of chick lit and prolific user of Twitter, was, you feel, always going to find it hard to fully relate to a working class new town built on heavy industry and hard work. High youth unemployment and yet more job losses at the steelworks this January didn’t help her cause either. Her resignation has aroused suspicions about why she became an MP in the first place. “She used Corby as a stepping stone, used it well to publicise herself,” Liam tells me. “I wouldn’t be surprised if she’s got a new book out by the end of the year.”

When she resigned from her seat in August, Mensch said she was doing so for family reasons. Yet in a recent interview with The Sunday Times Magazine, her husband, the rock band manager Peter Mensch, said that his wife had stood down because "she thought…she’d get killed in the next election." Mensch has denied this, but the fact remains that she has left a key marginal seat, midway through Parliament, with a slender majority of just 1,951. Labour are ready to pounce. “Ed Miliband was straight over here as soon as she resigned. I’ve had two people canvassing my door in the last week – they were Labour, both times,” says Keith. This push seems to be working – everyone I spoke to in the town said they were going to vote Labour.

The people I spoke to in Corby – proud, hardworking and down to earth – feel duped and used by Mensch’s time in office. They were hoping for a young, dynamic MP who would serve their interests well in parliament. The reality, many feel, was a lot different. On the day news of her resignation was made public, Mensch took to Twitter: "It has been an incredible honour serving the people of #CorbyEN." The feeling, according to Keith, is not mutual. “People wouldn’t miss her now she’s gone.”


Louise Mensch. Photograph: Getty Images
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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.