Some 180,000 children who have at least one parent working in the public sector are set to fall into poverty by 2015 as a result of welfare changes and continued wage restraint, the TUC has calculated.

Analysis issued today shows families where one parent works in the public sector and another works in the private sector would be the biggest losers – seeing their average household income decrease by £100 a week in real terms by 2015.  Of the 180,000 children affected, some 79,000 or roughly two in five, come from two-earner households with one parent working in the private sector.

The extended freeze on public sector wages - thought likely to continue into the next spending review period -  changes to the tax and tax credit system and the introduction of the flagship Universal Credit account for the bulk of the income reduction.

Some 101,700 families where both parents work in the public sector face a fall in household income of £91 a week, while around 385,000 households where both parents work in the private sector face a £44 cut in household spending power.

Additionally, some 330,000 children from workless households risk falling into poverty by 2015, according to analysis undertaken by Howard Reed of Landman Economics.

Frances O'Grady, TUC general secretary said: ‘Ministers like to play divide and rule by trying to pit private sector workers against allegedly well-paid public sector workers.

‘But these figures tell a very different story - 180,000 children with at least one parent who works in the public sector will fall below the poverty line thanks to government policies.

‘And with almost one in three working families having at least one parent who works in the public sector job you would think that ministers would be more conscious of trying to win their votes, rather than punishing them with years of pay freezes and real terms pay cuts.'