GERMANY has vowed to let Britain scrap in-work benefits for low-paid migrants in a desperate attempt to stop a vote to leave the European Union (EU) - but only if UK workers face the same.
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The "nonsense" proposals would see ONLY the lowest paid workers have their benefits capped, while higher earning migrants would still be able to milk the system.
Sources close to No10 say David Cameron is ready to accept the pledge as he panics over the possibility of a Brexit.
But the reform would only be approved by fat cats in Brussels if British workers face the same cuts.
One said: “We gave a promise to deal with immigration.
“This is about targeting the low paid. To present this as a victory would be simply wrong.
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“It would make little or no difference to the number of migrants coming here while hitting those who have contributed in terms of taxes.
It is a nonsense and it sends out entirely the wrong message
“What sense does it make if somebody who has been here for a few years, paying into the system, has their benefit stopped because they don’t earn a lot, but if you turn up on a slightly higher salary, you can claim immediately.
“It is a nonsense and it sends out entirely the wrong message.”
The offer from Germany is reported to have been put on the table instead of the Prime Minister’s demand to stop migrant workers receiving in-work benefits for the first four years of them entering Britain.
Eastern European countries have gone as far as labelling the idea of scrapping working migrant benefits as discrimination.
The proposed compromise comes after the Prime Minister demanded migrant workers be banned from reviewing in-work handouts for the first four years they are in the UK.
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A worker would be redefined a someone who earns over a certain amount, thereby stopping anyone who earns less from cashing in on the payouts.
Meanwhile, Chancellor George Osborne today revealed Britain has no plan of action in the event of an exit from the EU.
Mr Osborne made the comments while appearing to show confidence in David Cameron’s beleaguered renegotiation plans.
He backed the Prime Minister’s troubled dealings with the bloc and said Germany and France are among an emerging consensus that Britain is making a "perfectly reasonable case for change”.
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Asked if the Treasury had a contingency plan for if the Brexit vote claims victory in the upcoming referendum, he denied any such talks as having taken place.
Mr. Osborne said: "No, the Treasury is 100 per cent now focused on achieving the renegotiation.
"That is where the resources of the Treasury are deployed.
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Mr Cameron spent last week being whisked through the continent as part of his final attempt to convince European leaders to back the reforms he needs to keep Britain in the EU.
His latest move came as the Prime Minister confirmed the momentous decision that ministers will be allowed to campaign for a Brexit even if he declares his renegotiation a success.
Downing Street hopes a deal can be secured at a summit of EU leaders next month, potentially paving the way for the decisive poll in June or October.
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