Cameron to hint at assault on tax credits in welfare speech

Prime minister to attack 'merry-go-round' whereby the low-paid have money taken in tax and then given back in tax credits

David Cameron is to deliver his strongest hint yet that he intends to launch an assault on tax credits as he pledges to end the "merry-go-round" of welfare payments that means low wages are topped up by the state.

The prime minister will make the comments in a speech in Runcorn on Monday morning just weeks before George Osborne, the chancellor, sets out 12bn of welfare cuts, seeking to justify them in terms of both reducing the deficit and the need for further changes to incentivise work.

Related: Andy Burnham rejects Osborne's call for Labour support on 12bn welfare cuts

Related: Andy Burnham rejects Osborne's call for Labour support on 12bn welfare cuts