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:
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.
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:
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.
Real terms cuts to maternity pay and child benefit have left expecting parents hundreds of pounds worse off, the TUC has claimed.
The planned 1% increase to statutory maternity and paternity pay, adoption pay and child benefit introduced was still a cut, the TUC argued, because it was below the rate of inflation.
This was the fourth successive cut in the value of the benefits, which it claimed had led to new and expectant parents being £450 a year worse off, the union added.
General secretary Frances O'Grady said: "New babies are wonderful - but they can also be expensive, as any parent can attest. That's why it's important we protect the real value of family friendly benefits to give new parents the help they need to buy baby essentials.
"Family friendly benefits have come under stealth attack in every Budget since mid-2010. Successive years of real-terms cuts will leave expectant and new parents up to £450 worse off this year - enough to buy a year's supply of nappies, wipes and babygrows."
After a committee of MPs said the bedroom tax unfairly affects disabled people, Tim Farron says his party will push for change.Read the full story ›
The Liberal Democrats wants to see the so-called 'bedroom tax' changed so that people do not face moving out of their home with nowhere to go, the party's president has told ITV News.
Current policy means social housing tenants who have a spare room face having their housing benefit reduced.
Speaking to Deputy Political Editor Chris Ship, Tim Farron said Nick Clegg shared "the view that this is something that we want to see changed".
Citizens Advice has said an extra room "can be a lifeline" for a disabled person, calling it "as vital as a guide dog or a wheelchair".
Chief executive Gillian Guy said for many people a spare room "is essential to their wellbeing" as it is needed for dialysis equipment or room for a carer.
Ms Guy said: "Many sick and disabled people have bedrooms which have been adapted to help them to cope with their condition.
"Moving disabled people out of their houses is not only a potential risk to their health, but can cost the individuals affected and councils significant amounts of money if they need to start from scratch in a new home."