Speaking at the Labour Party conference, the shadow Chancellor, Ed Balls, has announced Child Benefit would be frozen if Labour are voted in at the next election, reports the Independent.
Ed Balls has stated child benefit would be frozen if Labour were to take power in the next election, reducing the amount those receiving those who claim child benefit would get in real terms. Currently, child benefit rises with inflation calculated using the Retail Price Index. However, under the new proposal child benefit would rise on 1% over the next two financial years.
The Labour party have claimed the freeze would save £400m, helping to cut the deficit. The freezing of child benefit is part of Labour's plans to improve the UK's finances, which also includes a salary cut of 5% for all government ministers from next May, saving a further £300,000. The aim of these cuts is to clear the deficit by 2020.