The former Tory politician is being investigated by detectives leading Operation Fernbridge, which is investigating claims that political figures and others sexually abused boys at various locations in England.
There have already been two arrests: one, a former care-home boss, and the other a Roman Catholic priest.
Scotland Yard said last night that the charges related to seven victims aged between nine and 15, with the alleged offences dating back to the 1970s and 1980s. A third, unnamed man was interviewed but later released with no further action taken.
The Thatcher-era Cabinet minister is believed to be the highest-profile target of Operation Fernbridge detectives.
One source close to Operation Fernbridge said last night: "When it comes to who is involved, the police do not care how important or high profile they are - these people will not be getting away with it any longer."
"Police and MI5 knew about the allegations involving [the former Tory Cabinet minister] years ago. He's already been spoken to by police. I'd expect an arrest in the near future.
"If the arrest happens - and I trust it will - it means that there has been a massive cover-up for decades at the heart of British politics. An arrest would blow this apart. We're at a watershed moment. The public must know."
One of the alleged victims of the Thatcher-era Cabinet minister is believed to be so "damaged", however, that he would be unfit to take the stand in any criminal case.
A political source said last night: "It is thought there is lots of intelligence, but it is not yet high enough to reach the bar for an arrest to be made. There's lots of circumstantial evidence that needs further inquiry." The source added that he knew the former Cabinet minister is being investigated by the police, but could not confirm that an arrest was imminent.
A spokesman for the Metropolitan Police said no comment could be made on the likelihood of future arrests under Operation Fernbridge.
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