A study, One Parent Families, Poverty and Labour Policy, commissioned by the charity and carried out by Cambridge University, says the Government must also regularly up-rate benefit and tax credit levels and increase the minimum wage and tax allowances in line with incomes rather than prices.
Kate Green, director of the National Council for One Parent Families, said, 'Setting targets for reducing child poverty was a brave and historic step, but it is clear from our study they cannot be met without policy reforms and increased, sustained investment. The Government should increase the child tax credit by 12 per child per week to put it in line with its target.'
The study warned the Government that simply relying on increasing employment 'would be too risky a strategy'. It said, 'Even if the 70 per cent target is met, part-time jobs do not guarantee a move out of poverty for enough lone parents.'
The study also stressed that significant rises in the national minimum wage from 4.50 to 5.50 and in the amount parents can earn before benefits are withdrawn were also central to reducing child poverty.
The report highlighted the burden placed on lone parents who have to pay 30 per cent of childcare costs themselves. It showed that where childcare costs are high, for example 200 a week for two children, 'nearly half of the job entrants become worse off on moving into paid work - the out-of-pocket childcare expenses exceed the extra income from paid work'.
While the study said that the target of cutting child poverty by a quarter by 2004 may appear attainable, in reality as living standards rise 'the poorest groups will fall further behind unless they receive extra help to enable them to keep up with average incomes'.