Hard working families have seen the benefits of ten years of stability: growing employment, low inflation and low interest rates. Looking forward, both our society and our economy are changing rapidly and we have to make sure we are providing the best support for families with children. Budget 2008 will:

• increase the first child rate of Child Benefit to £20 a week from April 2009, reinforcing Labour’s commitment to Child Benefit as the foundation of financial support for all families;

• disregard Child Benefit in calculating income for Housing and Council Tax Benefit from October 2009, improving work incentives for many of the lowest paid families and boosting their incomes. A working family with one child on the lowest incomes will gain up to £17 a week from this change; and

• increase the child element of the Child Tax Credit by £50 a year from April 2009 to further help low to middle income families.