Primary Schools and Other Agencies found childhood poverty continues to impact on the wellbeing and education of large numbers of children.
But researchers warned that targeting "problem" children and families can lead to a climate of stigma and censure and may prevent them from using the services they need.
Steve Sinnott, general secretary of the National Union of Teachers, said: "We need a shift in mindset from the appalling idea of 'insufficient children' who are stigmatised for receiving services from the state. Young people should be entitled to support whatever their social background."
Researchers also found the demands of national testing risk the development of children's broader life skills, which Every Child Matters aims to achieve.
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