"The Deputy Prime Minister signalled that the move would form part of next week's emergency Budget, insisting it was not "unreasonable" to expect the middle classes to make sacrifices.

"Currently, parents can claim child tax credit if they earn up to £58,000, or £66,000 if the child is under the age of one.

"The less they earn, the more they can claim, with payments potentially worth up to £2,850 a year for just one child.

"However The Daily Telegraph understands that the Government is considering restricting the benefit to parents with a combined income of no more than £30,000, or possibly as low as £25,000."

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