The think tank, Reform, says that the benefit should be means-tested and only go to families on low incomes.
Denying better-off families access to this benefit would save the Government £7.1bn and mean an additional £5bn was available to poor families.
"Extra spending on welfare has increased benefit payments to the well-off and entrenched a culture of worklessness and low aspiration," Reform said in a statement.
As part of its budget proposals the think tank is also calling for a hike in student loan interest to better match market rates.
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