Every child does deserve the best possible start in life

Gordon Brown

What was a "scar on Britain's soul", Mr Brown said, would be ended by a combination of lower unemployment, tax breaks for families and increased spending on public services.

"It is not just a moral issue but to us it is a litmus test - a challenge to every person in Britain," he declared.

"Every child does deserve the best possible start in life. For too long in the past families with children did miss out."

New credit

Central to the chancellor's plans, and a consultation document he was launching at the same time, is an integrated tax credit for families with children, announced in the pre-Budget report.

The already established working families tax credit helps one in four families, while the children's tax credit introduced last April benefits 85%.

Dr Carey was among the religious leaders who met Mr Brown

The integrated child tax credit would, Mr Brown said, help totally eradicate child poverty - classified as those in households living on less than half the average national income.

The benefit will come into effect in 2003 and brings together the relevant elements of the working families' tax credit, the disabled persons' tax credit, income support/job seeker's allowance and the existing children's tax credit.

It will be paid on top of the universal child benefit, which remains payable to all families with children, regardless of income.

Among those at the Downing Street event was the Archbishop of Canterbury, Dr George Carey, the leader of the Catholic Church in England and Wales, Cardinal Cormac Murphy O'Connor and Chief Rabbi Jonathan Sacks.

Cabinet colleagues Estelle Morris - the education secretary - and Alistair Darling - work and pensions secretary - were also there.

First term pledge

Dr Carey said the Government was right to identify child poverty as a "major priority" and it was apt that the group met as Christmas approached.

Dr Sacks described child poverty as "the scandal of our time".

"A fair society is one in which all children have equal access to hope," he said.

In its first term in power, Labour pledged to eradicate child poverty in 20 years and halve it in 10.

The number of children living in poverty fell by 300,000 - out of a total of 4m - in the first three years of Tony Blair's government, according to official figures.