Plans to reduce the number of caesarean deliveries and give women greater access to home births are being considered by ministers.
They want to remove incentives that see hospitals paid extra for surgical births, with or without complications.
The payments mean that one in four babies is delivered by caesarean section - almost double the World Health Organisation's recommended rate.
At around 155,000 babies last year, the figure is three times that of 1980 and one that flies in the face of efforts by the last government to encourage natural births.
Ministers say they do not want to 'demonise' C-sections or discourage doctors from performing them when clinically necessary.
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