The work and pensions secretary wants to limit welfare to change the benefits culture.
Iain Duncan Smith, the work and pensions secretary, has said that he wants to limit Child Benefit to a maximum of two children in any family.
Currently, the welfare system pays Child Benefit and Child Tax Credits for every child in all families.
Mr Smith told the BBC that working families often decide against having more children for financial reasons. However, he believes some families on welfare have been "freed from" making that decision because of the current benefits system.
The work and pensions secretary needs to try and save an additional £10 billion. But critics say this move will not make significant savings for the Treasury and instead will penalise working families – especially those that fall on hard times.
Shadow work and pensions secretary Liam Byrne has called it "welfare chaos".
Child Benefit is already being withdrawn from all families with a higher-rate or additional-rate taxpayer from next April.
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