Mr Hutton insists the new rules will be fair

Work and Pensions secretary John Hutton insisted the reforms were "radical without being punitive".

Setting out details of the Welfare Reform Bill, he said people on benefits had responsibilities as well as rights.

But the reforms were criticised as ineffective and "lacking in courage" by former welfare minister Frank Field.

Incapacity Benefit and Jobseekers Allowance will be scrapped and replaced with a single Employment and Support Allowance for those whose health affects their ability to work.

Claimants will be encouraged "to be actively engaged" in looking for a job, including attending regular interviews, completing action plans and work related activities.

Those who do not meet these responsibilities "could see their benefits reduced gradually," said Mr Hutton.

'Safeguards'

Private and voluntary sector operators could be given the power to impose sanctions on people who fail to co-operate - a move which has angered some campaigners who claim it will lead to discrimination.

But Mr Hutton said there would be a "clear system of safeguards" in place.

People whose disabilities are so severe they are unable to work will receive a new benefit at a higher rate but it will not be a condition of their entitlement of their benefit to participate in work-related activity.

A new Personal Capabilities Assessment will be carried out for all claimants to judge their capacity to work, which Mr Hutton said would be "more than just a snapshot" and should look at fluctuating levels of disability.

A review of how the assessment will be carried out is to report back by September, with particular focus on assessing people with mental health problems and learning disabilities.

Evicted

The assessments will focus on "measuring and building up each person's capability rather than writing them off as incapable".

Mr Hutton also promised people who had never worked would not be excluded from any of the packages available to other job seekers.

The Bill forms part of the government's plans to have 80% of people in employment.

People evicted for anti-social behaviour, who then refused to co-operate with support offered by the local authority to help them improve their behaviour, will have their housing benefit cut.

"We must send a clear signal to those evicted for anti-social behaviour that they are at the end of the line - and they cannot expect just to move to another property and continue their bad behaviour at the expense of decent hard-working families," said Mr Hutton.

The scheme will be piloted in 10 English local authorities over a two-year period - but families with children would not just be "turfed out onto the street".

Philip Hammond, for the Conservatives, said he was generally supportive of the overall structure of the proposals.

Lib Dem warning

Danny Alexander, for the Liberal Democrats, broadly welcomed the Bill.

But he warned that continued support from his party depended on the changes ministers were prepared to make to it. Mr Alexander said he was concerned the legislation included adequate safeguards for vulnerable people in the system.

And he pointed out that preparing disabled people for work was not enough if there were not employers ready and willing to take them on.

"This is a point on which the Bill and the Green Paper are lamentably silent," he said.

Mr Alexander added: "We will work constructively to improve this Bill but whether we support it when it returns to the House will depend entirely on the extent to which ministers are willing to listen to the many concerns that exist both inside and outside this House."

Unemployment rising

The plans were criticised as ineffective by Frank Field, who drew up Labour's original welfare reform proposals in 1997.

He said the government should move to a single rate of benefit for all claimants to remove incentives to stay on handouts.

Disabled people would receive extra help through the disability allowance scheme, rather than a higher weekly rate.

And people who find part-time work should be allowed to carry on claiming benefit until they can move up to a full time position.

"Unemployment is now rising and job vacancies are falling. It is therefore the most unfavourable time for moving people from benefit to work since Labour came to power," said Mr Field in a statement.