BUDGET 2005

Tax credit rise vital and will make a difference
16.03.05

priority for spending must maintain value of child benefit and tax credits

Responding to the Budget today, Kate Green OBE, the Chief Executive of the Child Poverty Action Group said,

'The commitment to continue to increase the child element in child tax credit in line with earnings is vital if the government is to stay on track to meet its child poverty target.

'CPAG is pleased that its pleas to the Chancellor to make this commitment have been listened to.

'We welcome the increase in educational maintenance allowance which builds on a popular and successful policy.

'Investing in EMA and in support through tax credits and child benefit as children grow up helps families to meet the immediate costs of raising children, and whilst we note that the government is to consult on further investment in the Child Trust Fund for older children, this will not benefit children in poverty now, and the priority for spending must be to maintain the value of child benefit and tax credits.' she said

For further comment:
Ashley Riley
Press Officer
Tel. 020 7812 5216
Mobile 07811 324339
Email ariley@cpag.org.uk