A majority of Britain's young population would be forced to live with their parents or support themselves if a series of welfare reforms by Prime Minister David Cameron come into effect.
As part of plans to tighten up the welfare system, Cameron wants to cut housing benefits for the under-25s. About 380,000 claimants are entitled to £90 per week.
The removal of the housing benefits would save the Treasury nearly £2bn.
The government is also looking at withdrawingt the £70-a-week assistance to the unemployed and will eventually force them to do community work after two years if they want to save all their benefits.
"We are spending nearly £2bn on housing benefit for under-25s - a fortune," said Cameron. "We need a bigger debate about welfare and what we expect of people. The system currently sends the signal that you are better off not working, or working less."
Child benefits may also be targeted.
"We are sending out strange signals on working, housing and families," he said.
"This is a difficult area but it is right to pose questions about it. The system encourages people not to work and have children, but we should help people to work and have children".
Cameron's plans could be expected to draw flak from his coalition partner Nick Clegg whose party is against any drastic welfare cuts.