THE Government has hit back at claims it is "short changing" children in the North-East by failing to increase child benefit and child tax credit in line with the cost of living over the past three years

The Campaign to End Child Poverty, a coalition of more than 150 organisations, said more than 130,000 children in the region were in families that were cutting back on food or heating their homes.

It said 24 per cent of families had cut back on food and 26 per cent on heating costs as a result of what it called a below inflationary up rating of benefits for children.

The worst hit areas were Middlesbrough (10,700 children) and Newcastle (8,900 children), its research found.

However a spokeswoman for the Treasury said it had taken action to support low and middle-income earning families with the costs of raising children and said the percentage of people in relative poverty was at its lowest since the mid 1980s.

The Campaign to End Child Poverty said the Government could significantly reduce child poverty by giving children’s benefits and tax credits the same “triple lock” protection that is provided for the basic state pension.

This would mean the benefits rise either in line with prices, earnings, or by 2.5 per cent – whichever is highest.

According to the Government’s own figures, 3.7m children are living in poverty in the UK. The Institute for Fiscal Studies claims by 2020 that figure could increase by 750,000 more.

David Holmes CBE, who chairs the coalition group, said: “It is deeply worrying that parents are having to cut back on food, heating and other essentials that their children need in order to develop and thrive.

“The new Government needs to seize the opportunity in the Queen’s Speech to stop the rise in child poverty. During the election campaign David Cameron promised not to cut child benefit, now is the time for him to keep that pledge.

“We think it is vital that child benefits keep pace with the cost of living and that the Government gives them the same protection as the state pension.”

A Treasury spokeswoman said: “In the last Parliament the child element of child tax credit, available to families with children on the lowest incomes, was increased by £180 above inflation, to help support families on low incomes with children.

“The Government also helps families with the high costs of childcare – for example by funding 15 hours a week of free childcare for all three and four year olds.”