Website of the UK government

What changes have been announced

There will be:

• an additional payment alongside this year’s Winter Fuel Payment
• an increase to the child element of the Child Tax Credit
• additional money allocated to the Social Fund over the next two years
• an increase in the level of statutory redundancy pay

Winter payment for pensioners

The Budget announced an additional payment of £100 to households with someone aged 80 or over, and £50 to households with someone aged 60 or over. This will be paid alongside the Winter Fuel Payment later this year.

• Winter Fuel Payment (over 50s section)

Social Fund

The Social Fund provides interest free budgeting and crisis loans for vulnerable people, allowing them to meet and spread the payment of unexpected costs. An extra £125 million will be paid to the fund in 2009-10 and another £145 million in 2010-11. This will ensure that the Social Fund across the UK is able to respond to increased demand.

• On a low income (money, tax and benefits section)

Child poverty

The Budget 2009 announced further targeted support for vulnerable households through the economic downturn including:

• increasing the child element of the Child Tax Credit by an additional £20 a year above indexation from April 2010
• amending the law to clarify that the current 4-week run-on in the Working Tax Credit extends to the childcare element, including for couples when only one partner falls out of work
• taking further steps to help low-income households gain access to the support they are entitled to

Further details will be published in the forthcoming child poverty Bill.

The Child Trust Fund and disabled children

The government will contribute £100 every year to the Child Trust Fund accounts of all disabled children, with severely disabled children receiving £200 per year. This further payment recognises that disabled children are likely to have higher financial needs when they make the transition to adulthood. Over 4 million children now have a Child Trust Fund account, which will ensure that at age 18, all young people will have access to a financial asset.

• Child Trust Fund (money, tax and benefits section)

Statutory redundancy pay

There will be an increase in the level of statutory redundancy pay, making the weekly rate £380.

• Redundancy (employment section)