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Lords tax credits debate

7 March 2016 (updated on 7 March 2016)

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Members of the Lords will discuss draft regulations on tax credits on Monday 7 March.

About the Tax Credits (Income Thresholds and Determination of Rates) (Amendment) Regulations 2016

These Regulations propose to amend the Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002. They will decrease the amount of income that is disregarded for the purposes of determining entitlement to tax credits from £5,000 to £2,500, where the income for that year exceeds the income from the previous year.  The change will apply from the start of the 2016-17 tax year.

The regulations will be debated on the basis of a Government motion seeking approval. A motion to regret has also been laid against the Regulations.

How do these draft regulations become law?

These changes to the tax credit system are proposed through regulations, which are a Statutory Instrument (SI). An Act will often contain a framework and statutory instruments are used to provide detail that would be too complex to include in the Act itself. They are also easier for the government to change than an Act – for example to upgrade the rate of payment each year or amend the necessary forms in the light of experience.

This Statutory Instrument is subject to the affirmative procedure, and must be debated and approved in both Houses before it can be made law. As part of this procedure, a vote may be taken on it if the House wishes; but most Statutory Instruments are approved in the House of Lords without a vote. The Commons have already approved the regulations.

Further information: