In May 2003, 2.38 million children - or 18.5 per cent of all children in Britain - lived in a family on an income-related benefit.
A year later the percentage had fallen to 17.7 per cent, or 2.27 million children, according to the Department for Work and Pensions.
Meanwhile, a new report claims that action is needed to target child poverty to avoid increasing the numbers of poor pensioners in the future.
Launched on Sunday at the Liberal Democrat conference by End Child Poverty and Age Concern, the study calls for more targeted government funding to tackle poverty across the generations.
The charities say that today's poor children are tomorrow's poor pensioners.
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