The Institute for Public Policy Research (IPPR) found that 1.4 millionchildren now live in poverty despite having at least one workingparent.
While 600,000 children have been lifted out of poverty since 1997, thereport says, 'some households have just swapped workless for workingpoverty'.
It says that 48 per cent of the working poor are couples with children,and the Government needs to address this group if it is to meet itstarget to end child poverty in the UK by 2020.
The IPPR recommends introducing a new Personal Tax Credit Allowancebased on each individual's income, as current Working Tax Credit rulescould provide a disincentive for the second parent in a family towork.
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