The Households Below Average Income figures show that in 2007/08 four million children lived in relative poverty after housing costs are taken into account, a rise of 100,000 compared to 2006/07.
It means that 400,000 children have been lifted out of poverty since 1998/99 when the government promised to halve child poverty by 2010. To reach this target, 1.7 million children would need to be lifted out of poverty after housing costs.
Relative poverty is defined a children living in households with below 60 per cent of average income.
Children's minister Beverley Hughes said: "Our determination to end child poverty by 2020 is as strong as ever and we are legislating to enforce this commitment. The ground-breaking child poverty bill will be published later this month."
But Hilary Fisher, director of End Child Poverty, said: "These figures call into question the legislation the government is planning to bring before Parliament. The bill will need to be very robust in terms of the requirements on government and local authorities and include a significant investment."
Shadow work and pensions secretary Theresa May said: "Gordon Brown's pledge to halve child poverty by 2010 is just one of countless Labour promises that lies in tatters."
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