Labour tensions as Rayner 'demands middle class lose child benefit'

Labour's civil war looks to be intensifying today amid claims Angela Rayner pushed to strip child benefit from middle-class families.

The Deputy PM suggested the Chancellor should 'claw back' the handouts from families where one adult earns over £50,000 a year.

The manoeuvring emerged amid more evidence of tensions within Labour about how to balance the books and prioritise spending.

The PM, who announced an humiliating U-turn on winter fuel allowance earlier this week, is said to be ready to ease the two-child benefit cap amid a massive revolt by MPs.

However, his chief of staff Morgan McSweeney has apparently urged the premier to hold firm, pointing to the £2.5billion cost. Downing Street sources flatly dismissed the Bloomberg report.