The children's allowance (child benefit) should be more than doubled as a key component of an attack on child poverty, the report recommends.
The monthly payment, which goes to all families with children, should be increased over three years until it is worth £25 per child per week, it says. In addition, families on welfare should get an extra payment of up to £15 per child per week, depending on their means.
The cost would be about £500 million a year, which could be phased in over three years. This expenditure is clearly feasible given the surplus in the public finances, the report says.
"Child benefit represents the fairest, most efficient and cost-effective way of supporting the costs of children," it says. It is paid to "the primary carer of children, the mother", it adds. But because of the link between child poverty and unemployment, measures are also needed to boost the capacity of families to get paid work, it argues, "especially those with no one at work". Tax and welfare policy "should assist non-earning parents to access employment, to maximise overall hours at work and to meet childcare responsibilities". This would include increasing the amount people on welfare can earn without losing their welfare payment. Income and work-related measures need to be matched by moves to boost the social and educational development of poor children, it warns.
"Education is crucial in this regard, as are health and housing and family support services. Unfortunately, our current education system is far from achieving equality of opportunity." More support for parents with the task of rearing their children is also needed, it argues.
"The role of parents in providing care for and nurturing their children has been largely neglected," it says. The main focus of policies concerning children "is on intervention in families where children are at risk of abuse". By contrast, "the provision of services to families to support their caring role is only a recently-emerging aspect of child welfare policy in this country".
The number of family resource centres and other services for families should be expanded, it says.