No, they are certainly not, ummmm.
They are simply being allowed to keep a little more of their own money in recognition of the fact that they have children and their costs are greater that somebody without.
It used to be easy. The taxman simply did not take it from families in the first place and this was achieved via the PAYE system. Now, of course, it is taken and benevolently given back. This makes the State look caring (when in fact there was no need for them to take the money in the first place) and provides employment in huge numbers to administer the ridiculous scheme.
However, this has nothing to do with jake's question (on which I've no views worth troubling you with) so I apologise for the hijack.