The architect of the biggest shake-up of the British welfare system in more than 60 years says it will immediately lift about 1 million people out of poverty.
Under legislation currently before the British Parliament, most existing benefits and tax credits will be replaced by a single universal credit from 2013.
The legislation is similar to recommendations by a welfare working group in New Zealand, which are still being considered by the Government.
Work & Pensions Secretary Iain Duncan Smith told Nine to Noon the single benefit will encourage people to get into work by ensuring their income doesn't drop when they do begin employment.
He said the culture needs to change so that people understand work is a vital part of life.
