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The 2008 Budget announced:

• an increase in the first child rate of Child Benefit to £20 a week from April 2009
• an increase in the child element of the Child Tax Credit by £50 a year above indexation from April 2009 to further help low to middle income families
• Child Benefit will be disregarded 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.

Working and Child Tax Credits rates 2008-2009

Amount is per year unless stated.

Type of allowance	2007-08	Change	2008-09
Basic element	£1,730	+£70	£1,800
Couple and lone parent element	£1,700	+£70	£1,770
30 hour element	£705	+£30	£735
Disabled worker element	£2,310	+£95	£2,405
Severe disability element	£980	+£40	£1,020
50+ Return to work payment (16-29 hours)	£1,185	+£50	£1,235
50+ Return to work payment (30+ hours)	£1,770	+£70	£1,840

Childcare element of the Working Tax Credit

Type of allowance	2007-08	Change	2008-09
Maximum eligible cost for one child	£175 per week	-	£175 per week
Maximum eligible cost for two or more children	£300 per week	-	£300 per week
Percentage of eligible costs covered	80%	-	80%

Child tax credit

Amount is per year unless stated.

Type of allowance	2007-08	Change	2008-09
Family element	£545	-	£545
Family element, baby addition	£545	-	£545
Child element	£1,845	+£240	£2,085
Disabled child element	£2,440	+£100	£2,540
Severely disabled child element	£980	+£40	£1,020

Child Benefit/Guardian's Allowance rates 2008-2009

Amount is per week unless stated.

Type of allowance	2007-08	Change	2008-09
Eldest/only child	£18.10	+£.70	£18.80
Other children	£12.10	+£0.45	£12.55
Guardian's Allowance	£12.95	+£0.50	£13.45

Further information

• Tax credits

• Child Benefit