Child benefit freeze robs families of £1k

Its new report said the government's decision to freeze and then cap child benefit will hammer families with two children to the tune of £1,079 between 2011 and 2015.

The Con-Dems have frozen child benefits since 2011 for three years. So a family with two children got a real-terms cut of £80.60 in 2011-12, then will see a £183.56 cut in 2012-13 and £234.00 in 2013-14.

And to add insult to injury, Chancellor George Osborne said in this month's Autumn Statement that child benefit would increase by only 1 per cent - well below the projected rate of inflation - in 2014-15 and 2015-16.

The TUC report shows that as a result of that cap instead of raising benefit by RPI a family with two children will lose £268.32 in 2014-15 and £313.04 in 2015-16, bringing their total loss over five years to £1,079.52.

It estimates that some families could lose over £3,000 as a result of the government's ongoing tax credit cuts.

Research also highlights how plans to introduce a new sliding scale for people earning between £50,000 and £60,000 will see higher-earning households with two children lose an additional £1,300 from 2013-14.

TUC general secretary designate Frances O'Grady said: "The government's decision to freeze child benefit has already hit millions of families at a time when real wages and living standards are falling.

"Many low-income households face even greater losses in the near future as a result of George Osborne's refusal to keep child benefit in line with RPI.

"Cutting the value of benefits for families means those in greatest need will get less, with the poorest children suffering the most."