Tax credits are a Rube Goldberg way to deal with low wages. Deal with wage levels to make sure that people who work can afford to live. Find work for those that want to work but don't seem to be able to get it on their own. And then simply give those that can't work what they need to live.

Don't give backdoor subsidies to Walmart shareholders by allowing them to pay their workers less than a living wage.

For a start, the "living wage" levels need to be precisely that, for decency's sake. Even the paltry increases Osborne's proposed need time to establish and work through the system, which could take a few years and no doubt much wrangling. That's the horse.

Then it becomes possible - and an easier political sell all round - to taper off the state subsidies. That's the cart.

But that demands political actors in good faith, which I doubt we're talking about here.

The Tories got such an easy ride during the election among all the Miliband and SNP and immigration etc. hysteria that I think they've kidded themselves they have a mandate for whatever they choose to do. A few defections, scandals or untimely by-elections for other reasons and that slim majority's gone.

If you have a couple with 2 pre-school children, their needs are more than a couple without any children (both the living costs for the children, and either childcare or loss of wages of one parent staying at home). A minimum wage that is enough for one person on their own, or half of a couple, is not enough for the family. In 2011, over 80% of households getting tax credits had children: http://www.poverty.org.uk/15/index.shtml

that when someone on the far left of the Labour Party is chosen as its leader, the next thing that will happen is a ferocious attack on traditional British institutions like the House of Lords, if they dare to do anything that contradicts the government....

Oh, you mean it isn't the Labour Left who are doing this???

LOL.