ITV News Political Correspondent Libby Wiener reports:
However, the Chancellor's Liberal Democrat deputy Danny Alexander said he did not believe the case should be linked to the welfare system.
Philpott was handed a 15-year minimum term sentence after being convicted of the manslaughter of six of his children.
He lived in a council house in Derby, claimed thousands of pounds in benefit and refused to get a job.
Mr Osborne's remarks drew a furious response from shadow chancellor Ed Balls, who called the link between Philpott and the welfare system "cynical, nasty and divisive."