Delivering his Pre-Budget Report, the Chancellor Alistair Darling said the increases will take effect from next April.
There are two separate amounts currently paid for child benefit, with a higher amount for the eldest, or only, child.
The payment stands at £20 a week for the eldest child and £13.20 a week for each other child.
As of April the payments will go up to £20.60 and £13.40 respectively.
The child element of the Child Tax Credit is set to rise by £20 above earnings indexation.
Anne Longfield, chief executive of 4Children, said: "In difficult economic times we welcome the announcement to provide above inflation increases to disability and child benefit.
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