A further £25bn spending cuts—much of it from the welfare budget—will be needed after the next election, Chancellor George Osborne has warned.
He said more austerity lay ahead, as the job was "not even half done".
He suggested making welfare savings by cutting housing benefit for under-25s and restricting council housing for those earning over £65,000 a year.
But Deputy Prime Minister Nick Clegg targeting the working age poor was "extreme… unrealistic and unfair".
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