Plans to remove child benefit from high income families could be diluted over the coming months.
Prime minister David Cameron has reportedly expressed concerns about aspects of the policy, that would cut the income of over a million families by more than £1,000 a year.
Under the current proposals, child benefit would be cut for families where there is at least one adult earning more than £42,475.
Single-earner households with salaries just above the higher rate threshold would be hardest hit.
The Coalition has not yet addressed the anomaly of two working parents earning up to £88,000 a year keeping the benefit, while a stay-at-home mother with a partner earning just over the £44,000 threshold for the 40 per cent tax rate loses it.