Two million children 'have no parent in work'

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 today.

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

The report warned that 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."

Helen Goodman, Parliamentary Under Secretary for the Department for Work and Pensions, said: "Work is the best way out of poverty which is why we've invested £5 billion to help people get back into work as quickly as possible. This action has meant thousands more parents are able to support their families through work despite these difficult times.

"We're determined to do all we can to support families struggling during this recession and measures that have been brought in since Budget 2007 like the increases to Child Benefit and Child Tax Credit, will lift around a further 500,000 children out of poverty.

"This is alongside the 500,000 children lifted out of poverty since 1997, but we know there is more to be done and the Child Poverty Bill will enshrine in law our commitment to eradicating child poverty by 2020."

Shadow work and pensions secretary Theresa May said: "Labour's one-dimensional approach to tackling child poverty clearly isn't working.

"It's disturbing that the UK has nearly 2 million children in workless households - the highest proportion in all of Europe.

"The Government's approach, which is to rely simply on means-tested benefits to address the symptoms of poverty is unsustainable and isn't working.

"Instead, we must tackle the root causes of poverty, such as worklessness, educational failure, family breakdown, drug abuse, indebtedness and crime."