Peers passed two motions for a delay, despite warnings from the UK Government not to challenge the “primacy” of the Commons in the escalating row over cuts to tax credits.
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The reaction to the House of Lords motion to delay tax credit cuts comes as MPs voted to pass the Government’s Welfare Reform and Work Bill.
Tory ministers are vowing to steamroller through swingeing cuts to tax credits despite being defeated twice in the House of Lords last night.
But Mr Osborne vowed on vengeance, threatening to “deal with” the peers.
Downing Street will carry out a “rapid review” into ways of ensuring the Commons always has the final word on financial matters, after chancellor George Osborne’s tax credit reforms suffered a major defeat in the Lords yesterday (26 October).
“This is a serious matter and I ask for you or the Speaker to give a statement to protect the rights of the elected representatives, not just for us but for the people of this country”.
“We are going to go on taking those hard decisions to deliver that lower welfare, lower tax and higher wage economy”.
Labour’s John McDonnell said people had been “shocked” by the way the Chancellor had pushed ahead with the changes.
The tax credit cuts are forecast to save around £9.7bn by 2020/21 as part of the government’s drive to save £12bn from welfare spending in order to reach a surplus in public spending.
He added: “Can he assure us that whatever proposals he brings forward, he will not support any that an independent assessment demonstrates will cause any child to be forced to live below the poverty line?”
The Conservatives have a majority in the elected 650-seat lower chamber, the House of Commons, but not in the Lords.
Details of the review ordered by David Cameron after peers defied a century-old convention not to block financial measures approved by the Commons would be worked out “in the next few hours”, said Mr Grayling.
“There will have to be change”.
Mr Mitchell, a former Chief Whip and worldwide Development Secretary, said: “I think the Chancellor deserves a few credit for having responded to the will of the Lords in the positive way that he has, and not dug in”.
A No 10 spokesman said: “The Prime Minister is determined we will address this constitutional issue”.
He could still consider wrapping the tax credit reforms into the Finance Bill – which is passing through the Commons – but he will be accused of ignoring the will of the Lords and would face heavy criticism. They are a revising chamber.
“The fact that this defeat was imposed on the Government by the House of Lords says a lot too”.
A growing number of Conservative politicians have also argued against the measure, saying it would weaken the party’s claim to represent working people.
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“George Osborne must now go back to the drawing board and come back with plans to balance the books that don’t simply attack working families who are already struggling to get by”, he said.
