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Seems to me like they created their own problem. Why are they using household surveys to estimate consumption to the compare it poverty line to then estimate the living standards of the poor?

Just measure them directly.

What does it mean for a child to be poor: >not enough nutrition >inadequate access to education >inadqeuate access to healthcare >inadequate means of transport >...etc

"Measure directly"? As in: go after every family and try to figure out their consumption basket? Producing census data is extremely expensive when compared with estimating consumption. Also, it's also a pain in the ass to participate in consumption studies since participants have to literally list every single thing they're buying for a given period. It wouldn't fly at all with the citizenry.