A Tory MP has floated proposals suggesting parents that have large families while out of work should face benefit caps.
Harriett Baldwin, a member of the Work and Pensions select committee, raised the possibility of jobless households being blocked from claiming child tax credits for more than four children.
The West Worcestershire MP, a mother of three, said 22 states in America bar any family on state welfare for any additional support for children conceived while on benefits.
She added: "If those who are in a workless household were told that they would not receive additional benefits for any new babies until such time as the household has a wage-earner, work incentives would be stronger.
"Perhaps the child tax credit element itself should be capped in a workless household? For example, should non-working parents be able to claim child tax credits for an additional child if they already have four children?"
Mrs Baldwin made the suggestions, which she acknowledged were "clearly controversial ideas", on a blog for the Conservativehome website, which has drafted in seven Tory MPs to come up with ideas to "turbo charge the UK economy".
Coalition reforms to the welfare system will see 12 million claimants begin to be moved on the the new Universal Credit, which replaces around 50 benefits including Job Seekers Allowance and income support, from 2013. The Government insists it will simplify the system, cut down fraud and incentivise work.
Mrs Baldwin also suggested a "sensible next step" was for benefit payments to be localised to peg it to an area's average wage.
A Department for Work and Pensions spokeswoman said: "Welfare reforms will restore integrity and fairness to a system that is failing the very people it was supposed to help.
"We cannot carry on with a situation where people on benefits can receive more in welfare payments than hard-working families and where a life on benefits robs people of achieving their potential."