The statistics published by the Department for Work and Pensions (DWP) cover income distribution in 2006/07. They relate to the amount of children, pensioners and working age people in relative and absolute poverty.

Former Prime Minister Tony Blair announced in 1999 the target of halving child poverty by 2010 and eliminating it by 2020. Nine years ago the figure stood at 3.4 million. But chief executive of Child Poverty Action Group, Kate Green, said more was needed to lift people out of poverty.

She said: "We don't expect it to be good news, but we know that with more money now going to poorer families there will be better news to come.

"We can expect a further half million children to be lifted out of poverty from the investment announced since 2007. This will keep the 2010 target (to halve child poverty) within reach, but is not enough to take us there.

"Keeping the promise depends on new initiatives in the autumn Pre-Budget Report and the 2009 Budget.

"It's a moral disgrace that we still have one of the worst child poverty records in Europe. Other countries do better, so why should British children suffer? We can end our child poverty shame and we must."

The Child Poverty Action Group is calling for an additional £3 billion to be directed towards the country's poorest children through the tax and benefit system in order to meet the target.

The group said generous changes to child tax credit and child benefit in Budgets and Pre-Budget Reports over the past two years have come too late to affect the latest figures.

And the changes - which ministers believe will lift 550,000 children out of poverty - will still leave the Government needing to help a further 550,000 in order to hit its target of 1.7 million.