THERESA May was branded the EU’s Santa Claus as she got the Cabinet to sign off a £38billion divorce bill.

The PM won approval to warn Brussels it will only get the money if a good trade deal is agreed.

4 Theresa May was branded the EU's Santa Claus after she got approval from the Cabinet to offer a £38bn divorce bill

But furious Tory backbenchers accused her of caving in to the EU.

The payout is aimed at breaking the negotiations deadlock and Mrs May will tell Brussels there are clear trade terms attached.

She is expected to make the extra £20billion offer, on top of £18billion already pledged, at an EU meeting in December.

There was a growing backlash with former Commons Deputy Speaker Nigel Evans saying: “Yes we will have obligations, but we’re not going to pay ransom money simply to leave the EU.”

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4 The PM summoned the Chancellor to help hammer out details of the UK's offer to Brussels Credit: AFP or licensors

He urged No10 to spend “on nurses not on Brussels bureaucrats”, adding the UK could not afford to play Santa Claus.

Powerful backbencher Robert Halfon said: “If we start saying that we’re going to give £40 to £50billion to the EU I think the public will go bananas.”

The PM summoned her team, including Chancellor Philip Hammond, to No10 to hammer out details. The big offer was revealed by The Sun last week. Later Michael Gove and Boris Johnson left the two-hour meeting stony-faced.

4 Michael Gove left a meeting last week and didn't seem impressed with the result even though May has the backing of top Cabinet Brexiteers Credit: PA:Press Association

But it is understood Mrs May received the backing of senior Cabinet Brexiteers.

Brussels German foreign minister Michael Roth said the EU27 need clarity from Britain on its divorce bill to get the green light for trade talks in December.

He said: “It is about the money. In the end, it’s about the rights of the citizens of the EU and it’s about the money.”

Ex-Brexit Minister David Jones will use a speech in Westminster to warn Mrs May she must walk away from Brexit talks if the EU reject her big financial offer.