Setting the targets for reducing child poverty was a brave and historic step but it is clear from our study that they cannot be met without policy reforms and increased, sustained investment Kate Green, National Council for One Parent Families

The tax credit, introduced in 1998, was designed to help women with children back into the workforce - and therefore helping to lift their families out of poverty.

But latest Treasury figures show that only 138,836 families in England - 2.3% of those getting child benefit - claimed the tax credit in May.

This could endanger the government's target of halving child poverty by 2010, the National Council for One Parent Families has warned.

Extra action

The Treasury still claims that the credit has been a success.

Ms Hewitt has called for extra action to improve the tax up of the credit, rather than reform of the credit itself.

Childcare credit is a key part of the government's action to combat child poverty.

A National Council for One Parent Families survey has found that tax credits to families with children need to rise by £12 a week, if the government wants to meet its target of halving child poverty by 2010.

"Setting the targets for reducing child poverty was a brave and historic step but it is clear from our study that they cannot be met without policy reforms and increased, sustained investment," said director Kate Green.