Section 1 of the Child Poverty Act 2012 requires the Government to report on whether or not the target to reduce the number of children living in relative income poverty by half by 2012/11 from a 1998/99 base was met. This report finds that the target was not met: although the number of children living in relative income poverty reduced to 2.3 million, that figure is 600,000 short of the number required to meet the target. Despite some progress, not enough parents were able to move into work and progress in work. Work did not pay as well as it should, and the proportion of poor children who came from working households increased. Not all poor families received the financial support they were entitled to because the system was complicated and unclear. The fact that the target was not met, despite significant financial transfers, demonstrates that poverty does not have easy answers. Whilst income matters, child poverty will not be eradicated by income transfers alone. The root causes of poverty must be tackled: worklessness, poor educational attainment, health and high levels of personal debt. The Government is setting up a new Child Poverty and Social Mobility Commission to hold Government and other institutions to account on progress in improving social mobility and reducing child poverty. The Child Poverty Strategy will: intervene early to support children and strengthen families; drive up educational achievement and make work pay.