BOLTON’s Conservative MP Chris Green accepts that “a point has been made” after government plans to cut tax credits were delayed by the House of Lords.

Peers voted for a pause on the planned £4.4 billion cuts until an independent study is carried out and backed plans to compensate those affected — in what has been labelled as a major blow to Chancellor George Osborne.

Bolton West MP Mr Green — who voted in favour of the cuts in the House of Commons — said he “understood” why the Lords did what they did but insisted tax credit reform is needed.

He said: “The point has been made — many people from both sides do recognise that more needs to be done to mitigate the short-term concerns about the changes to tax credits.

“But we are getting more and more people becoming dependent on tax credits, even some members of parliament claim them, and that seems completely wrong.

“We need to get to a position where tax credits are only there to support those who really need them — and that means we need to see employees increase the pay of working people.”

Tax credits, introduced by the last Labour government are aimed at helping low-paid families and include Working Tax Credit and Child Tax Credit.

The government’s proposals would see the income threshold for the Working Tax Credits — the point that they will see their payments reduced — slashed from £6,420 to £3,850.

The threshold for those claiming only Child Tax Credit’s would also drop from just more than £16,000 to £12,125.

In the wake of the lords vote Mr Osborne has said there are “constitutional issues” that need addressing — arguing that the unelected peers should not interfere with the will of the House of Commons on issues of finance and taxation.

Mr Green said: “The convention is that the Lords don’t overturn bills related to money — so it is unconstitutional.”

The proposed changes to tax credits are not due to come in until April and the Chancellor is now tasked with coming up with new measures to mitigate their impact.

Labour MP for Bolton South East Yasmin Qureshi said she wants the whole idea “put into the long grass.”

Ms Qureshi, who voted against the cuts, said: “I sat in the Lords to watch the vote come in and I was delighted with the result.

“The galling thing about this government is it says it is on the side of working people and yet it seems to be able to find money for the rich and hit those people on low incomes hard.

“The proposed changes to tax credits are obscene and completely wrong and prove that the Tories really are the nasty party.”

David Crausby, MP for Bolton North East, also voted against the cuts.