The majority of British children will soon be growing up in families which are struggling “below the breadline” because of welfare cuts, tax rises and wage freezes, the Government is warned today.

Within two years, almost 7.1m of the nation’s 13m youngsters will be in homes with incomes judged to be less than the minimum necessary for a decent standard of living, according to a new report.

The figures, which emerged a week ahead of George Osborne’s Budget, suggest that an unwanted legacy of the Coalition’s squeeze on spending will be to leave more children living close to poverty…

…the number of under-18s living in households below minimum income standards would increase by 690,000 between 2010 and 2015. The definitions of acceptable living standards are drawn up by the respected charity, the Joseph Rowntree Foundation...

“Austerity is OK if you are rich. It’s OK if you are one of the 13,000 millionaires in this country because austerity means you get richer. That’s because if you are rich, you’re in line for an extra £100,000 tax break, taken from the pockets of the poor.”

independent.co.uk