The Department for Work and Pensions wants the current focus on family income to be expanded to build a broader picture of what living in poverty means in the UK.
It hopes future measures will avoid skewed statistics that claim inaccurately to show improvements in child poverty rates.
Statistics for 2010/11 showed the number of children living in relative income poverty fell by 300,000, which was largely due to a drop in the median income rather than rising wealth.
“It is widely understood that the current relative income measure by itself is not providing an accurate picture of child poverty,” said the Work and Pensions Secretary Iain Duncan Smith.
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