New figures have shown that the government's decision to freeze child benefit for 3 years will result in a loss of more than £100 for families with multiple children.
In real terms, the freeze will result in a £80.60 loss for families with one child by 2013, while those with more children would lose a further £52. Although child benefits will be frozen, other benefits will be uprated by the change in the Consumer Price Index (CPI).
Chancellor George osborne announced in last month's Emergency Budget that child benefit will be kept at its current rate of £20.30 per week for the eldest child, and £13.40 per week for additional children. The freeze is to last until 2014 and was argued by Mr Osborne to be the best alternative to means-testing or taxation.
Other family entitlements that will be affected include child tax credits, the Health in Pregnancy grant and the Sure Start maternity grant. Earlier this year it was announced the Child Trust Fund would be scrapped from 1 January 2011, with reductions taking effect as soon as 1 August this year.
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