"The so-called 'dark-net' is increasingly used by paedophiles to view sickening images," Prime Minister David Cameron said in a press release.
"I want them to hear loud and clear, we are shining a light on the web's darkest corners; if you are thinking of offending there will be nowhere for you to hide."
U.S. technology companies Facebook, Microsoft, Google, Twitter and Yahoo are also on board with Cameron's plans. These companies will use so called "hash values" or digital fingerprints to identify images of child abuse and block them from being viewed and shared.
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Microsoft, Google and Mozilla are looking into implementing restrictions in their respective internet browsers to prevent people accessing sites known to contain child abuse material.
"Every time someone chooses to view an online image or a video of a child being abused, they are choosing to participate in a horrific crime. Every single view represents that victim being abused again. They may as well be in the room with them," Cameron said.
Britain's government has been under fire for its handling of child abuse in the U.K. after a report earlier this year found that at least 1,400 children were sexually exploited between 1997 and 2013 in the north England town of Rotherham.
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Child sex abuse by high profile celebrities has also been uncovered and the inquiry set up by the government to investigate ran into problems after two people set up to lead the investigation stepped down.
Cameron also announced partnerships with other countries and law enforcement agencies to tackle pedophiles, backed by a £50 million fund ($78.6 million).