...which is something that I'm not sure how could be resolved. It is basically a justice versus autonomy (and possibly non-maleficence) call.
When does the justice of sharing resources in an equitable way overcome the autonomy of individuals to express their rights? (Well, it is usually, or at least meant to be, when expressing those rights infringes on the rights of others).
Also, £12bn of welfare cuts would suggest we can't afford them...
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Well, what if this was shifted to a child neglect point of view? First child, you get payouts. Probably second child too. Third child onwards? Neglecting the child's needs by not having the means to support them properly, and beginning to infringe on the rest of the population by using public money. Practically a 2-child policy, and would favour those who could afford offspring too, which creates inequalities.