CHILD poverty in East Lancashire risks hitting record levels in the next few years amid "stagnating" living standards for households, a new study suggests.

The Resolution Foundation said the incomes of typical working-age households are not forecast to rise materially over the next two years.

The think tank said the "bleak" forecast for living standards is mainly driven by weak pay growth, which is projected to remain below pre-crisis levels of 4 per cent despite recent increases.

Ongoing welfare cuts are set to cause a "sharp rise" in relative child poverty, so that by the end of the current Parliament the proportion of children living in relative poverty is on course to hit 37 per cent, said the foundation.

It added that, by the end of the current Parliament, most children in single parent families or in those with more than two children, could be living in relative poverty.

Data from campaign group End Child Poverty published last year showed 44,253 children in East Lancashire were living in poverty.

Figures show Blackburn with Darwen, as a local authority, had the 12th highest level of child poverty in the UK and the highest in East Lancashire.

There were 16,034 children living in poverty in Blackburn with Darwen, which was almost 40 per cent of all children in the borough.

Burnley was second highest in East Lancashire with 7,637 children (36.32 per cent) living in poverty — 22nd highest nationally.

In third was Pendle, with 7,848 children living in poverty (35.50 per cent).

Fourth was Hyndburn with 6,745 children living in poverty (33.82 per cent), followed by Rossendale in fifth with 4,568 (29.62 per cent).

The lowest borough for children living in poverty was Ribble Valley with 1,421, just 12.9 per cent of all children.

The figures related to the number of children living in poverty after the cost of housing is taken into consideration.

Adam Corlett, senior economic analyst at the Resolution Foundation, said: "UK households have already taken a £1,500 a year hit to their incomes, compared to pre-referendum expectations.

"There's now a huge risk that their incomes stagnate over the next few years, as the economy's pay performance struggles to get out of first gear.

"The outlook for low and middle income families is particularly tough, with ongoing benefit cuts set to drive down income levels and drive up child poverty.

"The UK's current economic outlook is highly uncertain, and will hopefully surprise on the upside, but whatever direction the economy takes, the government must reassess the continuation of working-age welfare cuts.

"Otherwise, its non-Brexit record risks being stained by a return to record levels of child poverty."

A Government spokesman said: "Our priority is to support people to improve their lives.

"Since 2010 we've introduced the National Living Wage, doubled free childcare for three- and four-year-olds, and cut taxes for 32 million people to help families meet the everyday cost of living and keep more of what they earn.

"Recent figures show the unemployment rate is the joint lowest since 1975 and wages are growing at the fastest rate in over a decade, outpacing inflation for nearly a year.

"But we know that some people need more support. That's why we're spending £90 billion to support families who need it, and by 2022 we will be spending £28 billion more on welfare than we do now."