Equality campaigners divided over "wrecking" amendment to gay marriage bill

While some support the introduction of civil partnerships for heterosexuals, others warn of a "dark" and "cynical" attempt by Tory MPs to destroy the bill.

After devoting last week to an esoteric debate over Europe, this week is set to be another in which the Conservative Party demonstrates its increasingly tenuous relationship with the modern world. The gay marriage bill is back in the Commons for its report stage and David Cameron is likely to face a revolt on the scale of that in February when 136 Conservative MPs opposed the legislation.

Before the main vote tomorrow, MPs will vote tonight on an amendment tabled by former Tory minister Tim Loughton that would extend civil partnerships to heterosexual couples. Loughton, who opposes same-sex marriage, insists that the amendment has been submitted in good faith, but the government is briefing that it is an attempt to "wreck" the legislation. (It's worth pausing to note the oddity of Tory MPs opposing gay marriage, which won't "undermine" the institution of marriage, while supporting heterosexual partnerships, which certainly will.) It has warned that the change could delay the passage of the bill by up to two years and cost the government an additional £4bn in pension liabilities. On the Today programme this morning, equalities minister Maria Miller said: 

Look, I want to be seeing marriages being undertaken under this new bill as early as next summer and to actually put in at this stage such a fundamental change I believe risks that and it risks significant delay and I think those that are supporting it need to be very aware of that.

Miller's words were a warning to Labour, which has pledged to support the amendment on the grounds of equality. It has dismissed the government's warnings as "farcical", noting that the supposed size of the "price tag" has grown from £3bn to £4bn in five days. Some Labour MPs also believe that ministers may be preparing to use the passage of the amendment as a convenient excuse to abandon the bill. But other equality campaigners echo the government's concerns. 

Despite long supporting the introduction of civil partnerships for heterosexuals, the Lib Dems are set to vote against the amendment for fear that it will wreck the bill. Lynne Featherstone, the former equalities minister, said: "The people pushing these changes are not those with records of supporting equality and marriage rules that accommodate a diversity of couples.

"The proposals are coming from those who are avowed and determined opponents of equal marriage. Have they suddenly become converts to the cause of equality?

"Given their public statements I fear what is at work here is rather darker and more cynical – a deliberate attempt to wreck the legislation."

In addition, the gay rights group Stonewall has said that it is "anxious about anything that could delay this much needed change in the law to bring about marriage equality". 

But other campaigners, most notably Peter Tatchell, have urged MPs to support the amendment to correct a long standing injustice. Asked if he was concerned that Loughton and other Tory MPs were proposing it simply to "wreck" the bill, he said: "Yes, I am concerned but we should do the right thing, regardless of their shabby motives. Equality for all. You can't fault that." 

The outcome is now likely to rest on whether the government can persuade Labour that its warnings are sincere and that it should reconsider its position.

David Cameron addresses guests at the gay pride reception in the garden at 10 Downing Street, in central London on June 16, 2010. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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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.