News

Chancellor Gordon Brown announced an increase in benefits for people on low incomes and pensions in his pre-Budget statement.

The working families tax credit will be extended to couples aged 25 and over on low incomes without children.

Families on low incomes will also be entitled to receive new children's tax credits worth up to £2,800 for the first child and £4,800 if they have two children.

The Chancellor announced further development of children trust funds, and there will be detailed discussions with banks, building societies and friendly societies on how the fund may work.

Pensions for couples receiving £150 per week will rise by £21.50; those on £160 will receive an extra £17.50 per week; and those on £170 will receive £13.50 per week more.

Single older people receiving pensions of £110 a week will receive an extra £11.60

A green paper on pensions will be published, and there will be a consultation on simplification of the pensions tax.

The blind person’s allowance will rise in line with inflation.

Brown said the government would stick to its public spending plans, which means by 2006 local authorities will be receiving an extra £8 billion per year.

For more information on the Chancellor’s pre-Budget statement  click here