Child Benefit (Rates) (Amendment) Regulations 2008

That the Grand Committee do report to the House that it has considered the Child Benefit (Rates) (Amendment) Regulations 2008. Child benefit, together with tax credits, delivers financial support to the families of children in the UK, and both are vital in our commitment to tackle child poverty. I am pleased to introduce these regulations, which increase the rates of child benefit. In my view, the regulations are compatible with the European Convention on Human Rights. Child benefit is payable to over 7 million families for around 13 million children and young people, providing almost all families in the UK with a worthwhile contribution towards the cost of bringing up their children. The Government are providing further support to those families in these difficult times. We have brought forward our commitment to increase child benefit to £20 for the first child and to £13.20 for subsequent children to come into effect in January 2009 rather than in April. As a result of these changes, a family with two children will gain £24 from bringing forward the increase to child benefit. For the first child this is an increase above inflation and the Government continue to meet their commitment to increasing child benefit in line with prices. As a result of these increases, the rate payable for the oldest qualifying child remains over 25 per cent greater in real terms than the rate payable in 1997. A family with two children now receives more than £33 a week. In addition, although not part of these regulations, the Government are bringing forward their commitment to increase the child element of child tax credit by £25 above indexation in April 2010 to April 2009. Added to the existing commitment to uprate CTC this means that the child element will therefore increase by £75 above indexation. Next year, a family with two children with a single earner working full time on the minimum wage will receive around £10 extra in tax credits per week. We remain committed to the Government's long-term aim of eliminating child poverty within a generation and halving it by 2010; child benefit and tax credits will remain a key part of this. I commend the regulations to the Committee.