Welsh pensioners, children, small businesses and the environment are all winners in this year’s responsible Budget, Labour Secretary of State for Wales Paul Murphy said today.

Welcoming Chancellor Alistair Darling’s first Budget, Mr Murphy said up to 480,000 pensioner households in Wales would benefit from increases in Winter Fuel payment, while increases in the Child Benefit for the first child to £20 will benefit around 360,000 Welsh families and an increase in Child Tax Credits of £50 would benefit 197,000 families and help to reach the Government’s target to halve child poverty in the UK by 2010.

Mr Murphy said: “Pensioners in Wales, like those across the UK, will receive increases in Winter Fuel payments. For the over 60s it will be a £50 increase to £250 while over 80s will receive an additional £100 for a £400 one-off payment.

“This will be a real difference to some of the most vulnerable people in our communities in Wales by helping reduce the costs of their heating bills.

“The UK Government is also committed to working with the Welsh Assembly Government to achieve our shared objectives in reducing child poverty so that we can go on making a significant contribution to improving the life chances of our most disadvantaged children in Wales, now and for the future.

“Reforms to personal tax and benefit systems in previous budget announcements have meant poverty rates for children in Wales have come down to below the UK average for the first time. Our aim remains to eradicate child poverty in Wales, and across the UK, within a generation.

“The Savings Gateway, a cash saving scheme for those on lower incomes, is also being introduced nationally. After two years the Government will make a contribution for each pound saved under this scheme, and around 470,000 Welsh people will be eligible for it.

“The issue of child poverty typifies the partnership working of the governments at Westminster and Cardiff Bay to delivering the best possible services and opportunities for the people of Wales.”

Mr Murphy said today’s Budget would deliver a Barnett consequential to Wales of £5 million over three years for the Welsh Assembly Government to spend on its priorities.

Mr Murphy said small and medium sized businesses in Wales would benefit from reduction in capital gains tax and increases in entrepreneur relief, plus tax simplifications - rewarding enterprise, innovation and skills in Wales and continuing the Welsh economic success story.

He added: “The environment is also a Budget winner with the reform of road excise duty, encouraging drivers to choose greener vehicles, and the introduction of charges for single-use carrier bags from 2009. The Government is keen to see the measures extend across the whole of the United Kingdom and will work with the devolved administrations to establish the most appropriate way to achieve this.”