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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.”
The Child Poverty Action Group said that frontloading increases in child
benefit and tax credits would not bring the Government any closer to meeting
its child poverty targets.
The National Pensioners Convention accused Mr Darling of offering “peanuts to
pensioners” while finding billions for bankers. “Mr Darling’s proposed rise
in the state pension means that millions of people will get an increase next
year of just £4.55 a week, and no real extra help with their growing fuel
bills,” said Joe Harris, general secretary of the organisation.
Gordon Lishman, of Age Concern, said: “Extra help for pensioners is extremely
welcome but the package will still leave many of the oldest and poorest
paying for the downturn. The poorest pensioners will see little or no
reprieve in basic food and energy bills.”
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