There has been talk of an end to the child benefit cap. Personally I would keep it, until economic conditions are better, but change the limit to three or preferably four children, or reduce the amount for the fourth child. There are many families who start working and due to a change in circumstances end up on benefits. In fact this happened with my own mother who had to leave my father when pregnant with my second brother. We had gone from a family, not on benefits with two children to a family with a single mother and later, three children.
In my job, I have encountered the odd family where they appeared to be only too happy for the state to pay for their children, but these are few. Most those who I encounter where I work who are on benefits, work with benefits supplementing low wages.