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More than half of all school children living in poverty - 1.2 million - are missing out on free school meals, according to new research by The Children’s Society.

And 700,000 are not entitled to free school meals at all, according to the society’s Fair and Square Campaign, which wants to extend eligibility for free school meals to all children living in poverty in England by the end of 2012.

The report, though, shows that 91% of UK adults believe that all children living in poverty should receive free school meals. It is estimated there are 2.2 million school children currently living in poverty.

Free school meals provide vital financial support for low-income families, argues the charity. For almost a third of children, school lunch is their main meal of the day.

The Children’s Society’s Fair and Square campaign argues that eligibility for free school meals also has serious ramifications for families in low paid work and those looking to move back into work.

The planned introduction of Universal Credit means that many of the current benefits used to assess who is entitled to free school meals will be scrapped.

The Children’s Society, backed by several organisations including the Trades Union Congress, the Association of Lecturers and Teachers and 4 Children, wants the Government to extend free school meals to all children living in poverty, including low-income working families.

At the moment lone parents working 16 or more hours a week (24 hours per week for a couple) lose their entitlement to free school meals. Nearly half (45%) of parents are worried about the financial implications of moving back into work or taking additional hours.

Six of out of 10 parents (60%) say that free school meal eligibility has a direct impact on their decision to move back into work, or work more hours. One parent surveyed said: “When I move into paid work my income will be lower - school lunches are yet another thing to worry about.”

The Children’s Society’s Campaign for Childhood Director, Elaine Hindal, said: “We have shown that there are literally hundreds of thousands of children living below the poverty line who aren’t getting a free school meal. There is no reasonable defence for this policy failure.

“The Government has an unique opportunity to extend free school meals to all low-income working families, so that no child living in poverty misses out.

“his would be in line with the government’s aim to make work pay by paving the way for many families to return to employment and help lift them out of poverty.”

Evidence shows that eating a healthy meal at lunchtime improves children’s concentration and can have a positive impact on classroom behaviour.  Nutritious school meals for disadvantaged children can also help develop healthy eating habits and have the potential to decrease health inequalities.