Whatever they do, right-wing parties will lose out from the equal marriage debate

As the issue of same-sex unions finally turns into a parliamentary debate on both sides of the Channel, it is becoming more and more obvious that the Conservatives and their French counterparts have little to win and a lot to lose.

In the past few months, Britain and France have both faced the question of gay marriage – the French took to the streets, as it’s what they do best, and the Brits discussed it at lengths in pubs all around the country. What these countless conversations, columns and blog posts revealed was something quite peculiar: one side of the political compass had got caught in bitter infighting. For once, it wasn’t the Left.

When David Cameron announced in November that he was backing plans to allow gay marriage, he was faced with one of the biggest backlashes since the beginning of his leadership. The Daily Mail called it “the biggest Tory party rebellion in modern times”, but for once was barely exaggerating: by early December, 118 Tory MPs out of 303 had expressed their opposition to the proposal. A week later, a group of 19 cabinet ministers and other senior figures, including Boris Johnson and Michael Gove, wrote an open letter to the Sunday Telegraph, saying they were supporting the Prime Minister’s decision. Meanwhile, 64 per cent of voters are still against the proposed law.

Not that it’s any easier for the Union for a Popular Movement (the French leading centre-right party): their situation is fairly different, as they’re currently in opposition, but it’s far from simple. The official party line is to actively refuse any legalisation of same sex unions, but well known party members are heavily encouraged to keep their personal opinions to themselves. It is rumoured that 10% of MPs are actually in favour of it, but no one dares to speak out, which not only dampers the image of the party, but drove several important figures to leave.

Ex-MP Chantal Jouanno is one of them: when announcing that she was joining the UDI, a centre-right coalition created by Jean-Louis Borloo (himself a UMP renegade), she made it clear that she was pro-gay marriage and against her former party’s authoritarian stance on social issues. While seemingly anecdotal, this event tells a lot about the current state of the French (not-so) moderate right: though Sarkozy was criticised for flirting with the National Front’s extreme right, the recent election of the more radical Jean-Francois Coppé as a new leader shows a completely unashamed shift to the right. And this does not please everyone: the day he got elected, dozens of grassroots militants and (mainly young) voters cancelled their memberships, and posted pictures of their UMP cards cut in half on social media. By trying to reconnect with the people who chose the NF at the last elections, the UMP gradually losing the support of the centre and centre-right.

In a way, what’s currently going on in France is the opposite of what has been troubling the Conservatives recently. When he won the leadership bid, David Cameron promised to try his best to get rid of this ‘nasty party’ image, and regain some grounds on the centre. His strategy seemingly was to become more liberal on social issues regarding ethnic minorities or homosexuals, in order to appear like a more human and modern PM. This failed on several levels: when asked in October, 40 per cent of people thought that the Conservatives still were the “party of the rich”, and a third said that they were not sufficiently handling the NHS and other public services. Yet, the more right wing of the party feel that Cameron is not doing enough on traditional Tory issues - like the EU - and several backbenchers have threatened to defect to Ukip.

And things are not about to get any better: even if the Prime Minister and most of his cabinet ministers have publicly announced that they would vote in favour of a gay marriage law, well over a third of his MPs will oppose the legislation. Compared to the 80 per cent – at least - of Liberal Democrat and Labour MPs expected to support the bill, the Tories will find themselves on the wrong side of history. Remarkably, this still remains Cameron’s best case scenario: it’s still difficult to imagine that, even if he were to whip, or simply encourage his party to vote in favour, it would do much for his tarnished public image.

At least the UMP doesn’t even have to face a similar conundrum: with Jean-Francois Coppé having already admitted that he was not only against but “hostile” to the proposal, any sort of U-turn would be out of the question. Instead, the choice the UMP will have to make is whether to continue actively opposing the reforms – like they have been doing so far – or giving up and realising that the more vocal they are about the issue, they more irrelevant they’re beginning to appear. Seeing as the Socialist Party will almost unanimously vote for the legalisation of gay weddings, and that both centre-left and centre-right parties will give their MPs a free vote, it is almost certain to assume that the project will become law.  

So, in the great contest of right wing parties versus gay marriage, who will become the biggest losers? Will it be the Tories, when David Cameron finally realises that on top of being hated by the Liberal Democrats, Labour, and most of the public, he’s also managed to become out-of-touch from the core of his own party? Or will it be the UMP, when the ashamed moderate-right joins the UDI instead, and the bigoted hard-right defects to the National Front? 

Two men kiss during a demonstration in support of the legalisation of gay marriage [Photo: Alejandro Pagni/AFP/Getty Images]

Marie le Conte is a freelance journalist.

Show Hide image

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.