The Child Poverty Unit, which will begin work next month, will be based in the Deparment for Children, Schools and Families(DCSF) www.dscf.gov.uk.
Experts from the Department for Work and Pensions and the DCSF will develop policy with theTreasury.
Children's minister Ed Balls said: "Ending child poverty is a simple moral imperative; it has no place in modern Britain. There has been an enormous programme of social reform over the past 10 years that has lifted 600,000 children out of poverty - but this must accelerate, not plateau."
He added: "The Child Poverty Unit renews our commitment to eradicating child poverty. By working across government we can think and act strategically, share expertise and join up resources to help end child poverty."