However, his giveaway will have to be paid for via punishing taxes in the future, which will leave most of us feeling poorer for at least the next eight years.

So we might as well enjoy what seasonal cheer is to be had from his £20bn Christmas gift.

But before they head for the high street, consumers will want to know in what ways they are winning or losing.

Families with children: Winners
From January 5 child benefit is going up each week from £18.80 for the first child to £20, and £12.55 for subsequent children to £13.20. Child tax credit goes up by £150 to £2,235, and for disabled children by £130 to £2,670.

Families may also benefit from a bigger personal tax allowance next year. Not only is Chancellor not taking back the extra £120 he puts in most basic rate taxpayers' pockets when he increased the allowance to £6,035, as a result of the 10p tax row, but he is increasing it again from April to £6,475.

But for next year anyway, a couple with one earning and two children will be better off by £53 per month if they earn up to £25,500, £10 monthly up to £45,000 and £28 monthly above £45,000.

A family with two earners and one child with earnings up to £20,000 will be better off by £41, then as before £10 monthly up to £45,000 and £28 monthly above £45,000.

Taxpayers in general: Losers
Although taxpayers will benefit from the higher personal allowances for the coming year, many will be hit hard by the increase in National Insurance beginning in April.

Currently we lose 11% of what we earn up to £40,040 and pay only 1% above. However, from April, earners in this bracket will lose a further 10% on earnings up to £43,875, depriving them of more than £383.

On top of that, from 2011 all NI contributions will climb again by a further 0.5%, the equivalent to the introduction of a new 0.5% tax on all our taxable earnings.

Meanwhile, low earning single people with no children gain least, with those earning up to £15,000 only £21 better off from April. Then the monthly gain is £10, until earnings reach £45,000 when they again pocket an extra £28.

Motorists: Losers
Although, in theory, motorists should benefit from the cut in VAT on petrol, Darling has increased fuel duty from 50.35p per litre to 52.35p per litre (plus VAT) which comes into force tomorrow. But from April we will pay another 1.84p per litre duty (plus VAT) and then the VAT will go back up to 17.5% in January 2010.

AA president Edmund King said: "The Chancellor is giving with one hand and taking away with the other. Increasing fuel duty whilst reducing VAT shows that he is playing roulette with global fuel prices and could lose his gamble. It is a very big gamble as there are 32 million motorists out there and most of them have a vote.

"If the global price of oil increases this hike may come back to haunt the Government. It also means that when VAT reverts to 17.5% the motorist will be hit at the pumps once again."

The Chancellor is introducing a showroom tax which will add between £110 and £950 to the cost of a new car, for vehicles of Band E upwards. Car tax is rising by £5 across the board.

Pensioners: Winners
Pensioners will enjoy higher state pensions, which are rising from £90.70 to £95.25 in April, as well as higher personal tax allowances. Some aged 65 will be able to earn £9,490 before paying any tax, and £9,640 once they reach 75.

But pension credit too is rising by £5.95 for a single person and £9.10 for a married couple, which will help the least well off, while guaranteeing them a weekly income of £130 for single people and £198.45 for the married.

Finally, they will all receive an extra £60 by way of Christmas bonus on top of the £10 they normally receive, boosting their windfall to £70.

Women aged 60-65: Losers
Too young to benefit from higher tax allowances for the over-65s, this group was badly hit by the withdrawal of the 10p tax band. Despite the measures to help pensioners in general, they have still not been compensated.

Reader Lynette Livingstone from Edinburgh believes an injustice has been done to 1.1 million people, and politicians should not be let off the hook.

She said: "I'm only too conscious that there are many more millions of people badly affected by the current financial crisis, and this subject will be far down their list of priorities. However, we should be aware that those made worse off by the removal of the 10p tax band have not been fully compensated."

Higher earners: Winners

'What they give with one hand they claw back with the other'Like many families with young children, the Walkers are feeling the pinch and cutting back this Christmas.

Nicola, 35, from Gilmerton, Edinburgh, said: "Food-wise I've had to stop buying lots of things. With small children I have to buy fresh fruit, but I watch carefully what I buy."

With IT consultant Simon, 35, Beth, three, and Caitlin, one, the family is cutting back on Christmas socialising.

Nicola explains: "Normally, if we wanted to do something we would do it. But now if we go out I make a list of options of things we can do, and pick the cheapest. So we are still spending but being much more careful."

Nicola is pleased at the extra cash for the children from the budget but adds: "My husband is worried about the National Insurance rises. It seems that what they give with one hand they claw back with the other."

They are also both concerned about job security for the future. Simon is self-employed, and currently working on a contract for Royal Bank of Scotland, while Nicola has gone back to work part-time for Next.

She said: "I'm working about eight hours a week and did expect to get some extra hours but that has all been cut back. And we don't know what the future holds for Simon. We were talking the other night about a holiday next year, but it is impossible for us to make any plans."


Tax will rise for the better off from 2010, when those earning more than £100,000 start to lose any benefit from a personal allowance, and from 2011 when those earning more than £145,000 will be hit by 45% top rate. Together this will push their tax up to 53%.

Anyone paid redundancy: Losers
These higher rates of tax will apply to earnings in any given year, so if you are made redundant and receive a big pay off after a lifetime's service, you could lose more than half. Only the first £30,000 is tax-free if certain conditions are met.

Smokers and drinkers: Losers
The Chancellor has increased the duty on cigarettes and booze so that any cut in VAT is reduced. For example, alcohol duty is up by almost 8% in changes which will add 3p to a pint of beer, 13p to a bottle of wine and 53p to a bottle of spirits.