More cash is sought to ease the homelessness problem
The charity Shelter wants ministers to allocate more cash in its forthcoming spending review to ease the problem.
Government figures showed there were a record 78,000 homeless families during 2001, up 8.5% year on year, the organisation said.
"Thousands of children across the country are experiencing the terrible hardship of homelessness, with devastating effects on their education, health and well-being," said Shelter's director Chris Holmes.
"It is vital that the Chancellor commits to providing sustained long-term investment in affordable housing if the Government is to make a real difference to their lives."
On the day the government was due to publish new child poverty statistics, the charity said homelessness forced children to live in cramped conditions.
Frequent moves meant their education suffered and there was more chance of developing depression, hyperactivity, disturbed sleep and bedwetting.
Limited access to kitchens meant diet also suffered, said the charity, adding that stress on parents living in temporary accommodation also meant children suffered an increased risk of abuse.
According to figures from the Department of Transport, Local Government and the Regions, London has the highest number of homeless children (26,000), followed by the South East (12,500), West Midlands (12,200) and North West and Humberside (12,000).