Hard-up families get extra cash boost

More than 200,000 UK families will be £1,000 better off each year, thanks to new benefit rules which came into force this week.

New measures introduced by the Department for Work and Pensions mean that Child Benefit will no longer be taken into account when calculating entitlement to Housing Benefit and Council Tax Benefit, equating to more money for families.

The moves will also make it easier for hard-up families to get credit and leave them with an average of £20 a week spare, handy for those who are saving for a holiday or trying to pay off their credit card debt.

Secretary of state Yvette Cooper said: "Already tax credits make sure families are better off in work, but this extra cash is a practical way to make sure the benefits from working are even stronger."

Age Concern last week welcomed the measures which it says will benefit around 540,000 pensioner households and free up an extra £4 a week.