Child benefit could only be paid for the first two children under radical reforms being considered at the Treasury.
Senior sources confirmed that as the Coalition looks to trim more from Britain's bloated welfare bill, one option is to limit future payments of the handout by family size.
The proposal goes further than Work and Pensions Secretary Iain Duncan Smith's suggestion that workless families could have child benefit and child tax credits limited if they insist on having more than two children.
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