Child benefit could be limited to only three children, under plans being considered by the Tories. The proposals will only hit babies born after the law has been changed and could save the Government £300million a year. At the moment there are around 320,000 families with four or more children. The Chancellor George Osborne is resisting proposals from the Work and Pensions Secretary Iain Duncan Smith to cap child benefit at three children . Child benefit is paid to families with children under 16 – or under 20 if they are in education or training. But since 2013 families with one parent earning more than £50,000 a year have been excluded from claiming the benefit. It currently pays £20.50 a week for a first child, then £13.55 for other children. James Browne, of the Institute for Fiscal Studies, said the move would eventually save hundreds of millions of pounds  – but not for another 18 years because it only affects babies born after the law is changed. Child benefit is paid families with children under 16 - or under 20 if they are in education or training - and is worth £20.50 a week for a first child, then £13.55 for other children. Work and Pensions Secretary Iain Duncan Smith has previously proposed a two-child limit, but George Osborne is understood to have rejected it. The Treasury is now ‘softening’ to the idea and is examining the details. Tory MP Dominic Raab said it was not purely about cost but could ‘send a message about personal responsibility’. He said: ‘There is a much broader point than just the financial bean counting,’ he said. ‘It's the kind of welfare system we want - do we want a social safety net or are we saying that welfare is somehow a lifestyle choice? ‘And I think we do want the welfare system to send a message about personal responsibility, and yes that includes parents saving and taking some responsibility for the size of their family, making sure it's according to their means.’ But Labour MP Dame Anne Begg said people did not have children for child benefit and asked ‘why pick on’ large families. She said: ‘I don't think you have a child because you're going to get an extra... £13.55 a week.’ Dame Anne added: ‘Only one in seven families have three or more children - it's a small number - so why pick on them?’
Controversial proposal would only hit babies born after rule is introduced . At the moment there are around 320,000 families with four or more children . Child benefit paid to  under 16s - or under 20s in education or training . It is worth £20.50 a week for a first child, then £13.55 for other children . Work and Pensions Secretary Iain Duncan Smith is championing the plan .