CIVIL war broke out among Tories over tax credits yesterday as the party’s oldest think tank warned controversial cuts will “harm workers” — and its election chances.

The Bow Group branded Chancellor George Osborne “wrong headed” over his plans to cut the benefit for low wage workers in a new report.

And they admitted that robbing families of up to £3,000 a year will do massive damage to the Tories’ claim to be the “workers’ party.”