Chancellor gives boost to people on low incomes and older people

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