Ministers are shelving a scheme devised under Labour to target free meals to more low income families.
The scheme, due to start this September, could have given free meals to 500,000 more families.
Plans to expand a pilot scheme where all primary children are given free lunches from three areas have also been dropped.
Pilot schemes are running in Durham, Wolverhampton and the London borough of Newham.
The projects were due to be extended this September to five other areas- Bradford, Islington in London, Nottingham, Cumbria and Medway in Kent.
Most families living below the poverty line have jobs and this measure would have helped guarantee work makes them better off.
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