A Cabinet minister heaped pressure on Rachel Reeves to boost benefits today saying child poverty levels are 'shameful'.

Education Secretary Bridget Phillipson admitted there would be a cost to welfare changes but warned of 'serious consequences' if support is not bolstered.

The Chancellor is facing a perfect storm at the Budget this Autumn, with a clamour for more spending even as the economy slows down and interest rates on the UK's debt mountain rise.

Fears have been mounting that Ms Reeves is plotting another huge tax raid, with an array of grim options having been floated over the summer. Many MPs have been demanding a wealth tax in a bid to raise huge sums, despite alarm that entrepreneurs are already leaving the country.

Ms Phillipson is co-chairwoman of the child poverty taskforce that is drawing up the Government's strategy - due to be published in the Autumn.