There is more money for Sure Start, tax credits, child benefit and funding for free childcare to help workless parents into jobs.
Funding for Sure Start, childcare and early years will rise by at least Pounds 340m to over 1.6bn by 2010-11. Child benefit will increase from Pounds 17.45 to 20 per week by 2010. The child element of Working Tax Credit will rise by 150 a year from April 2008.
Mr Brown said he had focused on raising child benefits and tax credits to take more than 200,000 children out of poverty.
However, the increases to tax credits come at a cost, with the abolition of the lower ten pence rate of tax and critics accusing the Chancellor of taking money from poorer families.
But Mr Brown insisted that people on low incomes would benefit from increasing working tax credits.
The National Children's Bureau said it was concerned that Budget measures would not be enough to enable the Government to hit its target to halve child poverty by 2010.
The Daycare Trust, which has campaigned for free childcare places for students, welcomed the funding for 50,000 free childcare places for jobless parents in training.
Measures to increase the tax on small businesses could also impact on nursery owners.
The corporation tax on small business - companies with fewer than 250 employees - will rise from 20p to 22p in three stages by 2009.