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Pre-budget report - 9 October 2007Summary of main proposals:
Care
Announced plans to consult on reform of the adult care and support systems.
Child maintenance disregard
The child maintenance disregard in income support, income-based employment support allowance and income-related JSA will rise from £10 to £20 per week by the end of 2008, where maintenance is being paid.
In April 2010 the disregard will rise further to £40 per week.
The increase in the maintenance disregard in IS to £20 will be accompanied by an increase in the maintenance disregard in Housing Benefit and Council Tax Benefit, from the current £15 per week to a full disregard.
Child tax credit
In addition to the £150 increase announced at Budget 2007, the child element of child tax credit will increase by £25 per year above indexation from April 2008, and by a further £25 above indexation, from April 2010.
Income support
Increase the income support rates for 16-17 year olds from April 2008 to align with the 18-24 rates.
Jobseeker's allowance
Increase the jobseekers allowance rates for 16-17 year olds from April 2008 to align with the 18-24 rates.
Lone parents
In-Work Credit for lone parents to be rolled out nationally from April 2008 at a rate of £40 (£60 in London).
