David Cameron has hinted the Government could modify controversial plans to scrap child benefit for higher rate taxpayers.
The Prime Minister sparked speculation that changes were in the pipeline after he acknowledged the cut - due to come into effect next year - would have a "cliff-edge" effect for some families.
In an interview for Parliament's The House magazine, he said the changes were seen as unfair by some people and that ministers would look at the way they were implemented. However, one minister said that he did not expect to see a "major u-turn" on the policy.
In his interview, Mr Cameron acknowledged that parents stood to lose thousands of pounds if their income rises above the 40% tax threshold of around £43,000 a year.
A couple with three children could lose around £2,500 if one parent earns just a few pounds over the threshold, even if the other is unemployed, while another couple where both parents each earn just under £43,000 and enjoy a total household income of more than £80,000 will keep all their benefit.
"Some people say that's the unfairness of it, that you lose the child benefit if you have a higher-rate taxpayer in the family (but) two people below the level keep the benefit," Mr Cameron said.
"So, there's a threshold, a cliff-edge issue. We always said we would look at the steepness of the curve, we always said we would look at the way it's implemented and that remains the case. But again, I don't want to impinge on the Chancellor's Budget."
However, Employment Minister Chris Grayling said that he was not aware of any plans within Whitehall for a major re-think of the policy. "I would be surprised if we saw a major u-turn on child benefit," he told BBC Two's Newsnight.
"We always with every policy try to implement it in as sensible a way as possible but I have heard nothing to suggest that we're about to change direction massively on child benefit. The Prime Minister has said he will be careful and thoughtful how we do it and try and make changes as effectively and efficiently and fairly as possible."
Shadow Treasury minister Chris Leslie said: "These ill-thought-through plans are due to hit families in less than 12 months' time, so David Cameron and George Osborne urgently need to come up with some new proposals."