The Campaign to End Child Poverty said that the number of families on benefits has jumped by 170,000 in the past year, with Berkshire and Surrey seeing some of the highest rises in unemployment.
Through Thick and Thin: Tackling Child Poverty in Hard Times says that while progress has been made, the Government will fall well short of meeting its pledge to halve child poverty by 2010 without investing at least £4 billion in low-income families in this month's Pre-Budget Report.
The campaign, which is backed by 150 charities and organisations, has launched a Recession Recovery Package.
The five-point plan calls for the Government to invest in benefits and tax credits; increase funding and access to the Social Fund so parents can get help with emergency costs; increase Working Tax Credit from 80 per cent to 100 per cent of childcare costs; help parents to work in 'mini' jobs of 16 hours or less by not cutting their benefits; and help parents with extending free school meals on WTC and provide a school clothes grant for unemployed families.
Report author 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 that could leave children scarred for life and cost society £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, 'The Government must provide additional financial support for families in benefits and tax credits in the Pre-Budget Report.'
Further information: www.endchildpoverty.org.uk