More than 200,000 working families will gain about £1000 a year through changes to Housing and Council Tax Benefits.
Income from Child Benefit will no longer be taken into account when calculating entitlement to Housing Benefit and Council Tax Benefit. This will mean more money for families already getting these benefits and other low-income families becoming eligible for the first time.
Secretary of State Yvette Cooper said: "We want to do more to help families who are working hard to get by during the recession. 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."
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