In a highly significant move, ministers will fight a case at the European Court of Human Rights in which two British women will seek to establish their right to display the cross.
It is the first time that the Government has been forced to state whether it backs the right of Christians to wear the symbol at work.
A document seen by The Sunday Telegraph discloses that ministers will argue that because it is not a “requirement” of the Christian faith, employers can ban the wearing of the cross and sack workers who insist on doing so.
The Government’s position received an angry response last night from prominent figures including Lord Carey, the former Archbishop of Canterbury.
He accused ministers and the courts of “dictating” to Christians and said it was another example of Christianity becoming sidelined in official life.