George Osborne
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Spending review: Osborne announces welfare changes

20 October 2010 Last updated at 14:00 BST

The Chancellor of the Exchequer George Osborne says he is introducing the greatest reform to the welfare state in a generation, with £7bn in welfare cuts.

It includes reforms to job seekers' allowance, housing benefits and child care benefits.

"No family that doesn't work will receive more in benefits than the average family that does go out to work" said Mr Osborne.

"Taken together, all these welfare measures I have outlined will save the country £7 billion a year," he added.