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Child Benefit News
Child benefit increase of £20 a week brought forward
November 25, 2008
An increase in child benefit set for April will be brought forward to January to help families struggling in the downturn.
The surprise move means that on New Year’s Day the weekly allowance rises from £18.80 to £20 for the first child. That increase had itself been brought forward from 2010 to 2009 in the Budget to help the Government to meet its child poverty target. Payments for subsequent children, of £12.55, are unchanged.
The Chancellor also announced that the child element of child tax credit would be increased from April. That helps families who earn less than £15,000 a year, and brings the child element up to £1,810.
Pensioners will be given a one-off payment of £60 each in January, or £120 for couples, on top of the £10 Christmas bonus.
There will be no change to the increase in the basic state pension, to £95.75 from £90.70 next April. It was set in line with the inflation figure of 5 per cent recorded in September. Mr Darling told MPs that it would be of “real benefit” to elderly people as inflation was now falling sharply.
“In total, 15 million people will gain from the beginning of next year – pensioners and children,” the Chancellor said.
Campaign groups expressed disappointment with the measures. Anne Longfield, of 4Children, said: “While many of the measures will support families feeling the pinch, more needs to be done to support the most disadvantaged. It is good news that the Government is reaffirming its commitment to end child poverty. However, the PreBudget Report fell short in terms of measures to pick up the pace needed to deliver the 2010 target