After a committee of MPs said the bedroom tax unfairly affects disabled people, Tim Farron says his party will push for change.
The firm that carries out assessments for disability claimants is quitting its contract early, the Government has announced.
MPs have voted in favour of the government's plans to cap welfare spending - her is how it will work.
Labour have hit out at the Government for introducing tougher measures for the long-term unemployed but failing to assess the basic literacy and numeracy of benefit claimants.
Shadow employment minister Stephen Timms said:
– Stephen Timms
Under David Cameron's government nearly one in ten people claiming Jobseeker's Allowance lack basic literacy skills and many more are unable to do simple maths or send an email.
Yet this Government allows jobseekers to spend up to three years claiming benefits before they get literacy and numeracy training.
A Labour government will introduce a Basic Skills Test to assess all new claimants for Jobseeker's Allowance within six weeks of claiming benefits.
A Government scheme designed to get the long-term unemployed back into work or face benefits sanctions, will get more people "on the road to a more secure future", the Prime Minister has said.
David Cameron backed the Department of Work and Pensions tougher measures so "everyone who can work is in work".
– David Cameron
A key part of our long-term economic plan is to move to full employment, making sure that everyone who can work is in work.
We are seeing record levels of employment in Britain, as more and more people find a job, but we need to look at those who are persistently stuck on benefits.
This scheme will provide more help than ever before, getting people into work and on the road to a more secure future.
Tougher measures designed to get the long-term unemployed off benefits and into work come in, with claimants facing penalties if they refuse to take part, the Government has said.
The Help to Work scheme will include "intensive" coaching, required meetings with advisers every day or a six month stint of community work.
Ministers pointed out there are more than 600,000 vacancies in the economy at any one time, saying that the new measures were intended to help unemployed people fill them.
Work and Pensions Secretary Iain Duncan Smith explained: "There's always more to do, which is why we are introducing this new scheme to provide additional support to the very small minority of claimants who have been unemployed for a number of years.
"In this way we will ensure that they too can benefit from the improving jobs market and the growing economy."
The Employment Minister has said that a £200m fall in payments for jobless-related benefits means more people are "starting a new life off Jobseeker's allowance".
Employment Minister Esther McVey said: "We've seen more people move off benefits than even the experts predicted - with the number of additional people starting a new life off jobseeker's allowance filling Wembley twice over.
"Our jobcentre advisers up and down the country are working with claimants to ensure that they have the skills and opportunities to get into work, and plan for a more secure future in their community."
Payments for jobless-related benefits are £200 million lower than expected because of the fall in unemployment in recent years, according to new figures.
A government analysis of Office for Budget Responsibility forecasts showed that in March 2011 it was predicted that the number of jobseeker's allowance claimants would be about 1.35 million this year, but the actual figure is 200,000 less.
Plans to bind jobseekers to a series of commitments before they can claim unemployment benefit have "strengthened" staffs' ability to support those looking for work, according to a minister.
Welfare Reform Minister Lord Freud said:
– Lord Freud
With Universal Credit, we are creating a modern and sustainable welfare system that is fit for the 21st century - one that supports people when they need it and helps them become independent.
The Claimant Commitment redefines the relationship between jobseekers and the state. Claimants receive greater support to get into work from their work coach and we expect them to do all they can to find a job as quickly as possible as part of the deal for receiving their benefit.
Staff have told me it has strengthened their ability to support people into work at the earliest opportunity.
A new 'Claimant Commitment' setting out what jobseekers must do to find work in return for benefits have been successfully rolled out across the country.
The Department for Work and Pensions said the agreements had now been adopted in every UK jobcentre, with jobseekers agreeing to take steps to find work or face having their benefits docked.
Among the measures are registering to look for work through the universal jobmatch service or via a recruitment agency.
Jobseekers who fail to follow through with the commitment risk having their benefits docked.
Work and Pensions Secretary Iain Duncan Smith will credit Chancellor George Osborne for helping to create 1.7 million jobs since the election but will add that welfare reforms have also played a part in the current level of employment.
– Work and Pensions Secretary Iain Duncan Smith
Whilst others have questioned and puzzled over the record employment Britain is now seeing, as the Work and Pensions Secretary I have long believed that the strength of our labour market would both drive Britain's great economic recovery, and increase as a result.
First, this Government created the conditions for growth, and gave businesses the freedom and confidence to create jobs.
Second, we drove a programme of welfare reform where every change was designed to get Britain back to work - giving people previously left to languish out of work the skills and the incentive to take those jobs.
Work and Pensions Secretary Iain Duncan Smith will claim that the Government's package of welfare reforms have helped "get Britain back to work".
Mr Duncan Smith will say in a speech in London that the strength of the labour market is evidence that benefit reforms are also having an impact by boosting economic activity.
He will also accuse the former Labour government of trapping people in welfare dependency and robbing them of the drive to go to work, while claiming his reforms have given jobless people the incentive to seek and take employment.
Mr Duncan Smith will say that changes to benefits have played a crucial part in "creating a stable economy matched by a strong society where people are ready and capable of work".
A raft of welfare reforms have been implemented in the last year, including the so-called "bedroom tax", the introduction of Personal Independence Payments for disabled people and the imposition of the £500-a-week benefit cap.
New parents will be left £224 out of pocket by 2015 thanks to below-inflation rises to child-friendly benefits, a children's charity chief has said.
Belinda Phipps, chief executive of the National Childbirth Trust, explained:
– Belinda Phipps,
We strongly support this call for family-friendly benefits to increase in line with prices. This reinforces NCT research, published last month, showing that below-inflation increases to maternity and paternity pay mean new parents will lose out by £224 by 2015.
These changes will hit families' finances hard at a time when they should be focusing on bonding with their new baby.
We call on the Government to show that they value parents by increasing maternity and paternity pay in line with prices.