MILLIONS of children will see their families struggle if tax credit cuts go ahead, charity groups Barnardo’s and Child Poverty Action Group warned yesterday.

Up to 7.5 million children live with families who apply for the credit, which covers the cost of essentials that households with lower incomes cannot afford.

Children’s charities expect the tax credit to be included in George Osborne’s plan to cut £12 billion off the welfare bill.

Barnardo’s chief executive Javed Khan said: “Without this income, many ­parents could not afford their weekly food shopping, let alone school uniforms and books.

“With low wages and high living costs stretching budgets across Britain, tax credits are an everyday lifeline.

“Families would be better off if the government focused on tackling low wages and high childcare costs, instead of cutting struggling families’ incomes.”

Child tax credits and working tax credits were introduced in 1998 as a way to address rising child poverty.

Since their introduction the number of children living in poverty decreased from 26 to 17 per cent.