David Cameron has declared war on Britain's "culture of entitlement" with a raft of radical proposals to reform the welfare system.

They include plans to strip housing benefit from the under-25s, remove the right for high-earners to keep their council homes, reduce the £20,000-a-year cap on housing support and limit the additional benefit received by families with three or more children.

He said the proposals were part of a drive to end Britain's "culture of entitlement" which sees some people making more from long-term Government handouts than neighbours who work.

Many will see the speech as a bid to reconnect with the disgruntled Tory right who believe Cameron has allowed the Liberal Democrats to water down a number of hardline policies in the past.

Another controversial idea tabled in Monday's speech was to vary claimants' benefit rates according to the area in which they live.

Speaking to an audience in Kent, he said: "We have in some ways created a welfare gap in this country between those living long-term in the welfare system and those outside it.

"Those within it grow up with a series of expectations - you can have a home of your own, the state will support you whatever decisions you make, you will always be able to take out no matter what you put in.

"This has sent out some incredibly damaging signals. That it pays not to work. That you are owed something for nothing."