David Blunkett, the former Home Secretary, is due to tell a fringe meeting at the Labour conference that drastic measures are needed in order to rebalance the public finances.
Under current laws all parents, in spite of income, receive weekly child benefit payments.
However, there is mounting feeling that better-off families should not be receiving these benefits.
Vince Cable, the Lib Dem treasury spokesman, has suggested means testing child benefits but Blunkett is expected to say that the benefit should be taxed, as well as winter-fuel payments to pensioners.
Mr Blunkett will claim that the money raised from wealthier parents and pensioners could be used to fund Labour’s child poverty plans.
This is just a case of Labour soaking the rich in order to pay for the poor.