How the budget will impact on ... benefits

Mar 13 2008 by Cheryl Mullin, Liverpool Daily Post

MR DARLING announced welfare reforms which he said would lift up to 250,000 children out of poverty and maintain progress towards the Government’s goal of halving child poverty by 2010.

Campaigners welcomed the changes to child benefit and child tax credit, which will cost the Government about £900m a year once they come fully into effect.

They also hailed Mr Darlings reaffirmation of the Governments commitment to former Prime Minister Tony Blairs target of ending child poverty by 2020.

Mr Darling announced £125m over the next three years for pilot projects to cut child poverty.

Some 600,000 children have been lifted out of relative poverty since 1999, but experts have warned the Government was drifting off the 2010 target of 1.7m.

Labour left-winger John McDonnell said that, even on the Chancellors own figures, the plans would leave 2.5m children in poverty by the end of the decade, missing the target by 800,000.

Under yesterdays changes, the rate of Child Benefit paid for a familys first child will increase from £18.80 a week in 2008/09 to £20 from April, 2009, a year earlier than planned.

The 6.4% increase , well above the rate of inflation, will cost the Treasury around £210m.

The child element of Child Tax Credit will rise from April, 2009, by £50 a year.