Autumn Statement: First pasties and grannies... now the Mummy Tax Speaking in the House of Commons yesterday, the Chancellor did not mention that maternity pay is one of the benefits that will rise by just one per cent per year - lower than inflation. Catherine McKinnell, a Labour Treasury spokesman, said: "In the Budget the small print was the granny tax and in the Autumn Statement the hidden detail was George Osborne's mummy tax. The government claims they are targeting the work-shy and benefit scroungers, but it's just not true. They are hitting millions of working families, and mums taking time out from work to look after their new born baby. And all this is happening on the same day that millionaires get an average tax cut of over £100,000. It's completely unfair. New mothers get maternity pay for 39 weeks, with the first six on almost full pay, and the remaining 33 weeks at £135.45 per week. The move means maternity pay will rise by just £1.35 per week in April, rather than an inflation-linked increase of £3. This will squeeze household budgets as inflation increases the cost of living. New parents will be doubly hit as child benefit is another welfare payment that will rise by less than inflation. Child benefit has already been frozen at a rate of £20.30 per week for the first child and £13.40 per week for more children. After this freeze ends, it will rise by just one per cent for another two years.