Balls: First day of new tax year a 'black Wednesday' for families

Balls said the situation amounts to a "black Wednesday" for families on the first day of the new tax year due to a child benefit freeze, tax credit changes and the way benefits are linked to inflation.

Speaking to BBC Radio 4's Today programme, he said the changes will hit poorest families the hardest.

"If we're all in this together, why is it that women rather than men; families with children; and part-time working women losing their childcare support are being hit the hardest?," he said.

Alison Garnham, chief executive of Child Poverty Action Group, said children born from today will suffer as a result of less money for families.

"Britain’s first austerity babies will be born from today, with their parents finding themselves at least £1,500 worse off compared to the help they would have received a year ago bringing a new life into the world.

"It’s just not right to see bankers getting their bonuses again and the ministers promising a tax cut for the highest earners as soon as possible when today’s new babies are paying such a high price.

"We warned that the cuts failed the fairness test and now families will be feeling it. Child poverty will rise as a result of these unfair cuts and the health and wellbeing of these children will be at greater risk.

"Government must look at the fairer options available for dealing with the deficit, like stopping tax dodgers and taxing high earners more fairly. Families on a low income with a new baby should be last in line and should not face any cuts."

The concerns come a day after the government launched its child poverty strategy.

The strategy will centre on planned reforms to the welfare system, a shift towards early intervention and the introduction of the pupil premium.