Ed Miliband is to say he would not reverse the coalition's cuts to child benefit for the better off and that he supports a benefit cap.
The party leader is expected to use a speech on Thursday to acknowledge a Labour government would not be able to afford the £2.3 billion to reinstate the payments, despite having opposed the cuts at the time.
The BBC reported that the Labour leader will also say he supports an overall cap on benefit payments which were not the direct result of rising unemployment.
The move comes after shadow chancellor Ed Balls announced on Monday that Labour would end winter fuel payments for better off pensioners and will be seen as a further attempt by the party to rebuild its economic credibility.
However Labour had previously strongly criticised Chancellor George Osborne's decision to cut child benefit for higher rate taxpayers, arguing it was unfair and showed ministers were out of touch with hard-working families.