The Child Poverty Action Group publication said much progress had been made since Tony Blair made his pledge to eradicate child poverty in 1999.
But Paul Dornan, its policy officer, warned: "If it is not possible to generate further increases in the employment rate then further strain will be placed on the tax credits to deliver improvements in family income."
After Children Now went to press, the Department for Work and Pensions was due to publish its response to a select committee report into child poverty, which was released two months ago.
www.cpag.org.uk.
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