Children living in poverty on rise

Two million children have no parent in work, according to a report

The number of children in families living on benefits has increased by 170,000 over the past year, with child poverty growing in affluent as well as traditionally hard hit areas, according to a new report.

The Campaign to End Child Poverty said a "staggering" two million British children now had no parent in work.

The report warned the number of children in families without jobs was rising to its highest level for a decade.

Without substantial investment now, 2.3 million children will be living in poverty in 2010, more than half a million above the Government's target, it was warned.

Investing £4 billion would take the Government close to its aim of halving child poverty, said the campaigners.

The report's author, social policy researcher Donald Hirsch said: "We couldn't afford to let the banks fail and now we can't afford to fail our children, our future.

"Rising unemployment has created a new poverty crisis which could leave children scarred for life and cost society some £25 billion a year. This dwarfs the investment needed to hit the target to halve child poverty by 2010."

Kate Green, chief executive of the Child Poverty Action Group, said, "This shows that more investment is needed as families feel the effects of the recession.

"The Government must provide additional financial support for families on benefits and tax credits in the Pre-Budget Report in November. We also need a wider recession recovery package that improves the Social Fund, increases childcare, helps parents to work part time without losing benefits and meets extra school costs."