Mixed response to family tax credit

THE Family Welfare Association welcomed the next phase of the working families' tax credit system, which will see five million families take home an extra £520 a year in a bid to 'make work pay'.

Chief executive Helen Dent said: 'The system will see child benefits transferred into tax credit, which we see as more desirable because the take-up of benefits by people who are in work is very low .'

However, Gingerbread, which supports single parent families, was more cautious. A spokeswoman said: 'While we are pleased to see an increase in the incomes of low income families, child poverty rates in this country remain disgraceful. Improvements in people's income should be accompanied by an improvement in services, particularly child care.'

Contrary to reports, the Chancellor did not announce a £500 investment for all babies, which could be cashed in on their 18th birthday.