Norman Smith on Cameron's 'clear steer' on tax credits

The BBC's Norman Smith says David Cameron will give a "pretty clear steer" later that he is looking at curbing tax credits as part of the government's planned £12bn savings from the welfare bill.

In a speech in Sunderland, the prime minister will say he wants to make work pay and end the "merry-go-round" in which people have their income taxed and their pay "topped up" with benefits.

"That again, I take as a reference to tax credits," he says.

"When you look at the areas open to claw back money, you are basically talking about housing benefit, or possibly disability benefit or tax credits and tax credits account for something like £30bn of the welfare bill."