The proposals include a complete reform of the tax credits system which has failed millions of families since it was introduced. Schools could also receive £1,500 cash for each pupil they take from a disadvantaged family and Child Benefit would be raised by £5.
The plans follow a recent study showing that there are still massive inequalities in Britain. The charity Barnado's predicts that the government will fall far short of its 2010 child poverty target. Meanwhile, the Joseph Rowntree Foundation has shown that inequality has grown and social mobility fallen since 1997 and most people believe the gap between rich and poor is too big.
"The inequalities and poverty in Britain today are a national disgrace," said John Leech MP. "We need to tackle the causes of child poverty rather than the just the symptoms"
"We've also proposed cutting the base rate of tax by 4p leaving millions better off," he continued.
"This government was elected on a promise to end poverty and reduce inequality but their policies have done anything but."
"The Liberal Democrat vision is of a society of genuine opportunity where, instead of treating the symptoms of inequality, we treat its causes - poor educational opportunities, unemployment, bad housing and unstable families," added Lib Dem Work and Pensions Spokesman David Laws MP.
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