Massive Government welfare cuts will be met by removing tax credits from around 3.7million working families under plans being considered by ministers.
George Osborne is understood to be examining a cut to the benefit which could save the Government around £5billion.
It would mean that millions of low-income families would lose out on around £1,400 a year.
The Chancellor announced during the last Parliament that the Government would need to find a further £12billion of cuts to the welfare budget by 2017.
Ahead of the general election, the Conservatives refused to outline how they plan to make the spending reductions.
So where will the money he is taking from families going to go ?