We analyze the bipartite and multipartite entanglement for the ground state of the one-dimensional XY model in a transverse magnetic field in the thermodynamical limit. We explicitly take into account the spontaneous symmetry breaking in order to explore the relation between entanglement and quantum phase transitions. As a result we show that while both bipartite and multipartite entanglement can be enhanced by spontaneous symmetry breaking deep into the ferromagnetic phase, only the latter is affected by it in the vicinity of the critical point. This result adds to the evidence that multipartite, and not bipartite, entanglement is the fundamental indicator of long range correlations in quantum phase transitions.