In the June 2010 Budget, the Chancellor announced plans to increase child tax credits by £50 above inflation as a measure to prevent rises in child poverty. The spending review in October last year reaffirmed the pledge, meaning that there would be annual increases of £180 above inflation in 2011/12, and then £110 in 2012/13.
But in his autumn statement today (29 November) George Osborne reversed the decision.
He said: "We will uprate the disability elements of tax credits, and increase the child element of the child tax credit by £135 in line with inflation too. But we will not uprate the other elements of the working tax credit this coming year.
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