The think-tank has warned that benefit and tax credit reforms would reduce the average household’s income by £160 in 2012/13 and that families with children would be the hardest hit.
It said that there is a disconnect between the government’s stated aims on child poverty and its policies.
"Given this, there seem to be two constructive ways forward: the government could reveal a credible plan for meeting the targets that it has signed up to; or it could set different targets which reflect its view of what is both desirable and achievable, and set out how it plans to meet those," the institute said in a statement.
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