Emergency Budget: Child benefit frozen for three years

Addressing the House of Commons, George Osborne said he would not means test or tax child benefit but instead said he wanted to keep the popular universal benefit. But the rate of child benefit will remain at £20.30 per week for the eldest child and £13.40 per week for each other child in a family for the next three years.

Addressing the House, Osborne said: "I have received many proposals about [child benefit]. Some have suggested we means test it, others that we tax it.

"This benefit is usually claimed by the mother. To tax it would mean that working mothers received less than the non-working partner of a millionaire. Means test it and we would have to create a massively complex new system to assess household incomes.

"So instead, to control costs, we have decided to freeze child benefit for the next three years. This is a tough decision, but I believe it strikes the right balance between keeping intact this popular universal benefit while ensuring that everyone, across the income scale, makes a contribution to helping our country reduce its debts."

The Chancellor also confirmed that the government would scrap the Health in Pregnancy Grant, a one-off tax-free payment of £190 for every mother-to-be who is at least 25 weeks pregnant.

Also reasserted was the fact that the Sure Start Maternity Grant will be limited to the first child only and that lone parents will be expected to look for work when their first child goes to school.

Tam Fry, board member of the National Obesity Forum, was disappointed that the Chancellor announced the scrapping of the Health in Pregnancy Grant.
 
He said: "Rather than getting rid of it the government should have reviewed it and looked to improve it. They could have perhaps considered giving it earlier, at 10 or 12 weeks of pregnancy, and perhaps in voucher form."