David Cameron says a proposal to apply an “emergency break” on in-work benefits for EU migrants is “not good enough” .
The plan was proposed by European Union Commission president, Jean-Claude Juncker during talks with the Mr Cameron in Brussels.
The plan would allow all European Union members to stop paying in-work benefits to EU migrants for four years if they can prove that their welfare systems are under strain.
Mr Cameron said there was no deal but progress had been made.
The PM said: “We’ve still got a long way to go but, one instance of progress is that, for a long time, I have been saying we’ve got to have a system where you don’t get benefits out of the system until you pay into our system.
“People said that was impossible. There needs to be more work but we are making progress.”
Mr Cameron is under pressure to reach a deal with other EU nations on four demands – which include benefits, sovereignty, integration as well as recognition that the euro is not the only currency of the European Union – at a EU summit on 18 February before holding an in/out referendum.
But some EU countries are resisting the idea and view it as discriminatory towards their citizens.