The Government's welfare reform plan

The Government's welfare reform plan is due to replace several different benefits in 2013 including Employment and Support Allowance, Housing Benefit, Child Tax Credit, Income Support, Jobseekers Allowance, and Working Tax Credit.

Benefits
The Government are reforming the benefits system to help people back into work Credit: Rui Vieira/PA Wire

The Coalition Government has identified two key problems with the current system: work incentives are poor, and the system is too complex.

They are reforming the system to help people to move into and progress in work, while supporting the most vulnerable.

Universal Credit is also intended to encourage claimants to work, by allowing them to keep more of their benefits when they start to earn.

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'Shame' benefits cheats

Benefits cheats should be shamed by having their photo pinned to every lamppost in their street, an official at the Department for Work and Pensions said.