Terry Rooney for Bradford East

TENS of thousands of grandparents who care for their grandchildren and claim other benefits will be financially better off under plans announced by Government following years of lobbying by Terry Rooney MP

Prior to the Budget Terry Rooney met with Chancellor Alistair Darling at a private meeting where he called for action to be taken to change the tax system.

As it stands if a grandparent takes on their grandchild they cannot claim child benefit and instead are given a guardian allowance. Child benefit is not taken into account if claiming any form of benefit, whereas the guardian allowance is, meaning money is lost if housing benefit or help with council tax is needed.

In the recent Budget Mr Darling said changes would be made so the allowance would not be taken into account when working out other benefit entitlements.

Terry Rooney said: “At my private meeting with Alistair he said he would look at it seriously. There are around 200,000 grandparents who are looking after children because the natural parents are unable to or incapable. Until now the Guardians Allowance they receive - in lieu of Child Benefit -has been classed as income for Tax Credits, Housing benefit, Income Support etc and the budget measure means this will no longer be the case. This will put extra money in the pockets of thousands of people in caring roles.
“I am pleased we will now be giving real practical and financial support to these grandparents for everything they do instead of punishing them as the system does at the moment.”

Chief Executive of Grandparents Plus Sam Smethers said that Terry Rooney, who also chairs the Commons' powerful Work and Pensions Select Committee, was instrumental in changing Government policy.

She said: “Terry has made a huge difference on this and directly influenced Government policy and we are so grateful to him for the work he has done. He has been a great advocate for grandparents and carers and he has shown real leadership and how his constant lobbying has paid off. This will make  real difference to people’s lives.”

Terry Rooney was last year praised by Prime Minister Gordon Brown for his campaigning over the issue