Child poverty pledge 'needs £3.8bn'

The report, by children's charity Barnardo's, congratulates Tony Blair for his "historic and ambitious" pledge to cut child poverty from 3.4 million to 1.7 million, and for the 600,000 children rescued since it was made eight years ago.

But it also claims that the good work has stalled and there is little prospect of the pledge being met unless incoming Prime Minister Gordon Brown commits an additional lump sum to the £1 billion already earmarked for tax credits in the 2007 budget.

According to the Institute for Fiscal Studies, quoted in the report It Doesn't Happen Here - The Reality of Child Poverty in the UK, this will save 200,000 children from a lack of food, clothing and adequate living conditions.

But to wipe a further 900,000 children from the 2.8 million living in poverty, more action is needed.

The IFS estimates that the target could be achieved by increasing the child element of child tax credit by a further £11 a week at 2007 prices and giving families an extra £20 per week for the third and subsequent children through the family element of the child tax credit. To do so, the Government will have to spend £3.8 billion more than planned.

Martin Narey, Barnardo's chief executive and chairman of End Child Poverty, said Mr Brown has a unique opportunity to continue Blair's legacy, and warned a failure to act would affect the entire fabric of society.

He also highlighted that the increased spending Barnardo's is calling for represents two thirds of 1% of this year's public spending and less than half the £9 billion paid in City bonuses last year.

According to the Barnardo's report, the Government's Sure Start scheme - which helps families and toddlers from birth to age five - and its tax credits - Labour's flagship welfare policy introduced in April 2003 - proved instrumental in cutting poverty.

But through interviews with 40 of Barnardo's families around the UK, including black and minority ethnic families, families struggling on low wages, lone parent families and families affected by disability and large families, asylum-seeking families and young people living independently, it found that poverty remains indiscriminate and prevalent.