hancellor George Osborne has said he will act on concerns about the impact of tax credit cuts after peers inflicted a serious blow on the government by demanding major changes.
He promised "transitional help" for those affected after his party was defeated twice in the House of Lords.
Downing Street has signalled a review of Lords conventions to address what it says are "constitutional issues".
Conservative MPs reacted angrily to the defeats, accusing the House of Lords of over-stepping the mark in blocking measures backed by elected MPs.
Commons leader Chris Grayling said full details of the transitional tax credit relief would be announced at the end of November in the chancellor's Autumn Statement - the government need to find up to £4.4bn to cover the cost of the climb down.
Mr Grayling told BBC Radio 4's Today programme the government "mustn't be distracted from our overall economic strategy".
Tax credits were introduced by the last Labour government to help low-paid families. Under the government's plans, the income threshold for receiving Working Tax Credits and Child Tax Credit is due to be cut from April.
Critics say the move could deprive low-income workers of up to £1,300 a year.
But the government says it is essential to tackle the deficit and argues most claimants will be better off when other changes, such as the introduction of the new national living wage, are taken into account.
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