Now Osbourn will have no choice but have a re-think.
"Baroness Meacher told Sky News that the government was "pulling the rug" from under the feet of working people, saying the outcome sent a "powerful message" to MPs to think again"
But he will have to get it past the House of Commons first.
Don't forget the Tories only have a majority of 12. Substantial amounts of his own Party have been very unhappy about these new proposed changes to tax credits, which will see many people thrown into poverty.
This is going to need a drastic re-think and Osborne knows it. A very bad defeat for this new Government and so soon after the Election. It just shows how out of touch they really are with what ordinary people think.
Id be more concerned about the Major Blow to Lie Bore of picking Jezz Cor Blimey as "leader".....still you have your little moment of pleasure, its going to be long time before you get any from your beloved mob of losers and no hopers...
Serious indeed for George, given he plainly wants to take over from Dave
The excuse about "getting the deficit down" is less likely to wash with people, ironically now that the economy is doing better. Added to the fact that this is an attack not just on "hard working people" whom the Tories claim to love, but on self-employed "hard working people" too as we've seen.
Plus the fact of course that before the election Dave swore blind they wouldn't cut tax credits.
A major blow for electoral democracy too. Either scrap the house of Lords completely and have a democratically elected second chamber with party political plants rejected in favour of ordinary people from all walks of life.
Then, if they vote the elected government's bills down they could not be accused of making a laughing stock of what little remains of the principles of democracy in this country.
Like Brown's tax gaff in the Last labour government where it was not the unelected chamber's interference that led to the reversal of the policy but pressure from inside his own party, this bill would have been amended anyway by the same process, without interference from the unelected chamber.
Is it a major blow for democracy? I don't think so
26% or so of those eligible to vote did so for the current government, and I wonder how many of those are happy with the lies told by Cameron beforehand about tax credits.
Meanwhile it's up to the Lords to force the government to backtrack in the face of public musgivings.
So to my mind this is democracy in action. The Tories have lifted not a finger to reform the upper house so this sudden hissy fit is rather amusing
I bet our esteemed chancellor was actually delighted by the Lords' vote. If he ends up fixing the deficit, he takes the credit. If he doesn't, they take the blame.
Heads I win, tails you lose.