RACHEL Reeves is ready to bin the two-child benefit cap — and pay for all children in full however big their family.
The Chancellor’s controversial move would cost taxpayers an extra £3.5billion.
She had been considering tapering the handout so families received less cash for each child after the second.
But that triggered a revolt by ex-PM Gordon Brown and Labour MPs.
So the Treasury drew up plans to axe the cap altogether — and hand big families on benefits more, paid for by tax rises in the November 26 Budget.
The largest families would receive more than £18,000 a year.
But it could spark a backlash from working couples who limit their families because they cannot afford more.
A frontbencher said: “The argument is — whatever the problems with the parents, it isn’t the fault of the child.
“Lifting the cap in full is the simplest way to get kids out of poverty.”
The cap stops families claiming £292.81-a-month Universal Credit for the third child or any others born after April 6, 2017.
The Treasury would not comment.
