An extra £200 per child is on its way to help parents care for toddlers, thanks to new measures in the Budget. Families with children aged between one and two who earn less than £50,000 a year can claim the "Toddler Tax Credit".
Work and Pensions Secretary Yvette Cooper said 885,000 families were eligible, as she also unveiled a benefit boost worth up to £56 a week for grandparents and other "unsung heroes" who look after children "at times of family difficulty".
Payments made by local councils for "kinship care" will no longer be counted against their claims for housing and council tax benefit.
Both changes will be paid for by £200 million savings the Department for Work and Pensions aims to realise through automating benefit processing and reducing accidental overpayments.
"This toddler tax credit gives parents more help and choice when they need it most," Ms Cooper said, detailing the change.
"It will give families with young children an extra £200 a year in their pockets at a time when many parents want to stay at home or work part time."
"We will spend £10 million to put more money into the pockets of family members like grandparents who step in and bring up their grandchildren when their families are going through hard times.
"These people are often unsung heroes, who have not been properly recognised by the benefit system up to now.
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