Young unemployed people could be forced to live with their parents and denied housing benefit under plans being considered by the Government.
The radical proposal is being worked on by Downing Street and the Department for Work and Pensions as part of a drive to make sure people are better off working than on benefits.
At the moment, people under the age of 25 can get housing benefit to help pay the rent for bed-sits or rooms in shared accommodation if their wages and savings are below a certain level.
However, they could be forced to live with parents or other relatives, like many other young people in their first jobs.
It comes ahead of a key speech by David Cameron defending his efforts to “get a grip” on Britain’s welfare bill.
The Prime Minister is expected to say he is prepared to “rub people up the wrong way” over his determination to push through radical reforms.
Launching his party’s Welsh local election campaign, the Prime Minister will claim that he is ready for a “flat-out, full-throttle fight” to convince people Conservative values of responsibility and hard graft.
Mr Cameron has endured a week of tough criticism over the Conservative party’s “cash-for-access” scandal and accusations that his ministers sparked a fuel-buying panic.
In a fight-back against his critics, the Prime Minister will say he prepared to “take hits” and look at the “horizon, not at the headlines”.
He will say he is ready ignore the “whispering voices” telling him to “play it safe” if he wants to win a majority.
“For years people said “you can’t reform and cut welfare – the bills are bound to get higher, this is a fact of British life and there’s nothing you can do about it,” he said.
“We said – hang on – it can’t be right that we pay people more to stay at home than go out to work. We’ve been the first government to come in and properly get a grip on this.”
He will tell local party members in Wales that he is ready to “seize the chance” to make fundamental reforms on welfare, pensions and reducing the deficit.
“You can tinker around a bit and put a lick of paint on the old problems,” he will say.
“You can commission reports and reviews to shove problems further down the line.
You can blame inaction on the bad times you’re in – or in the good times, say you don’t need to bother. Or you can take a different path. You can close that Number 10 door behind you and say: this is our chance. Our precious chance to change our country and we’re going to seize it.”