But Zara Sultana, one of the Labour backbenchers pushing for a change, said reversing the change was “not a radical demand”.

Also speaking to Laura Kuenssberg, she added that doing so was a “matter of political will” and accused the chancellor of “not looking in the right places”.

She suggested increasing taxes on wealth and raising capital gains tax, paid on the sale of assets, could be used to raise funds to pay for the policy.

In a sign of the depth of feeling within the party on the issue, fellow backbencher Rosie Duffield has described the cap as amounting to “social cleansing”.

Writing in the Sunday Times, external, she added that the “sinister” policy was “an attack on women’s right to choose how many children they have”.

Save the Children, a charity, has estimated that scrapping the cap would take half a million children out of relative poverty.

It argues that government plans for an anti-poverty strategy will not be “credible” unless the cap is dropped at the autumn Budget.

The Institute for Fiscal Studies think tank has estimated, external that removing it would eventually cost the government £3.4bn a year, roughly 3% of the total budget for working-age benefits.

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