SIngle parent Teresa Govan, 39, will be £5 a week better off as a result of the increase in Working Families Tax Credit.

But she was philosophical about the increase, saying: "We will probably pay more for something else, so I don't expect it will make things much easier."

The tax credit will rise by £5 a week from June, taking the hourly minimum rate for those on it to £6.40.

Ms Govan, a cook at Barton Village primary school, receives the credit with her wages each month. She has three children - Patrick, Shane and Daniel - but she will not benefit from the £10-a-week child tax credit.

"I don't earn enough to pay tax, so that doesn't affect me," she said.

She will, however, get an extra £3 a month in child benefit for 15-year-old Shane and 13-year-old Daniel, a sum that was anounced before the Budget.

As a smoker, she was also resigned to paying the extra 6p for cigarettes.

"I'm pleased that there is more for the NHS and education, because we need it," she said.

"The school where I work is due to close in about 18 months and they are supposed to be building more classrooms at Bayswater School, but the work doesn't seem to have started yet, so everything is up in the air."