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Benefit move to cut child poverty | Benefit move to cut child poverty |
(about 3 hours later) | |
Chancellor Alistair Darling has announced plans to help meet the government's child poverty target. | Chancellor Alistair Darling has announced plans to help meet the government's child poverty target. |
The Budget revealed changes to child benefit and housing and council tax benefits from 2009. | The Budget revealed changes to child benefit and housing and council tax benefits from 2009. |
It has been widely predicted that the government is in danger of missing its ambitious target of halving child poverty by 2010. | It has been widely predicted that the government is in danger of missing its ambitious target of halving child poverty by 2010. |
The plan, announced by Tony Blair in 1999, also outlined a wish to eradicate child poverty entirely by 2020. | The plan, announced by Tony Blair in 1999, also outlined a wish to eradicate child poverty entirely by 2020. |
Benefit changes | Benefit changes |
The chancellor announced that from April 2009 child benefit for the first child would be increased to £20 a week - a year earlier than planned. | The chancellor announced that from April 2009 child benefit for the first child would be increased to £20 a week - a year earlier than planned. |
READ THE BUDGET IN FULL href="http://downloads.bbc.co.uk/news/nol/shared/bsp/hi/pdfs/12_03_08_budget_speech_08.pdf" target="_new">Budget statement [112KB] href="http://downloads.bbc.co.uk/news/nol/shared/bsp/hi/pdfs/13_03_08bud08_completereport.pdf" target="_new">Complete report [4.06MB] Most computers will open this document automatically, but you may need Adobe Reader Download the reader here class="" href="/1/hi/business/7292417.stm">More Budget documents | |
From the same date the child element of the child tax credit for families on low and middle incomes will increase by £50 a year above inflation. | From the same date the child element of the child tax credit for families on low and middle incomes will increase by £50 a year above inflation. |
Child Tax Credit is paid to families with children regardless of whether the parents work. | Child Tax Credit is paid to families with children regardless of whether the parents work. |
At present, families with incomes up to £14,495 a year should qualify for the child element of £1,845 a year for each child. | At present, families with incomes up to £14,495 a year should qualify for the child element of £1,845 a year for each child. |
This child element is then gradually withdrawn from families with higher incomes. | This child element is then gradually withdrawn from families with higher incomes. |
Mr Darling also said he wanted to change the rules on housing and council tax benefit from October 2009, so that "parents were better off in work than on benefits". | Mr Darling also said he wanted to change the rules on housing and council tax benefit from October 2009, so that "parents were better off in work than on benefits". |
He said child benefit would be disregarded when calculating income for housing and council tax benefit from that date. | He said child benefit would be disregarded when calculating income for housing and council tax benefit from that date. |
Child poverty | Child poverty |
The changes would cost the government about £900m a year when they all came into effect. | The changes would cost the government about £900m a year when they all came into effect. |
"If we are to build a fairer future for our children then we must eradicate child poverty in Britain," Mr Darling said. | "If we are to build a fairer future for our children then we must eradicate child poverty in Britain," Mr Darling said. |
Kate Green, chief executive of Child Poverty Action Group, said: "This is excellent news for Britain's poorest children. | Kate Green, chief executive of Child Poverty Action Group, said: "This is excellent news for Britain's poorest children. |
"It keeps the 2010 target to halve child poverty in reach. It won't take us all the way there, but today the intent is clear and a significant step forward has been taken." | "It keeps the 2010 target to halve child poverty in reach. It won't take us all the way there, but today the intent is clear and a significant step forward has been taken." |
But Conservative leader David Cameron said that 5.3 million of the lowest paid would be worse off after the Budget, following the abolition of the 10% starter rate of income tax. | But Conservative leader David Cameron said that 5.3 million of the lowest paid would be worse off after the Budget, following the abolition of the 10% starter rate of income tax. |
Hitting the target? | Hitting the target? |
The government's aim was for the number of children living in households living on below 60% of average income to be cut by half to 1.7 million. | The government's aim was for the number of children living in households living on below 60% of average income to be cut by half to 1.7 million. |
The Institute for Fiscal Studies estimates that to hit the target extra spending of £3.4bn would have been needed on benefits and tax credits. | The Institute for Fiscal Studies estimates that to hit the target extra spending of £3.4bn would have been needed on benefits and tax credits. |
Estimates suggest that despite the changes in the Budget, the 2010 child poverty target will be missed by 450,000. | Estimates suggest that despite the changes in the Budget, the 2010 child poverty target will be missed by 450,000. |
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