Niall Dickson: "Pleasure and disappointment over new benefit changes"

Measures include a sharp rise in child benefit, previously announced in the budget, compulsory interviews for those seeking benefits and a minimum guaranteed income for the disabled.

Duncan Smith: "A missed opportunity"

There will also be tough new rules for claiming Incapacity Benefit.

The Conservative social security spokesman Iain Duncan Smith dismissed the proposals saying they were "re-launched, re-issued and re-hashed".

Mr Darling told the Commons that the government's central intention in welfare reform "is to provide work for those who can and security for those who cannot".

Iain Duncan Smith: The new plans are simply "re-hashed"

He said: "Our plans will be based on our belief in fairness, will give greatest help to those with the greatest needs, and make sure that benefits only go to those who are entitled to them."

Mr Darling said that under plans to bring in a "single gateway" to benefits all people of working age would be required to attend an interview to assess their employment options.

Alistair Darling outlines the new "single gateway" to the benefit system

He then restated the government's plans to make what he described as the largest ever increase in child benefit which will rise by £2.95 to £14.40 a week by next April.

Most National Insurance benefits, he said, will rise in line with the retail price index, at 3.2% and means-tested benefits will rise by 2.1%.

Reform of disability benefits

Mr Darling also plans comprehensive civil rights for disabled people along with a Disability Income Guarantee of £129 a week for a single person and £169 for a couple.

Social Affairs Correspondent Kim Catcheside talks to those most affected by the changes to disabilty benefits

A further £30m is also being made available for a programme to help for disabled people seek work.

Further changes to disability benefits see an extra £25 a week for people made disabled before they were 20 years old and who have little hope of work.

The controversial Benefit Integrity Project, set up by the last government, is being scrapped and Mr Darling announced plans to discourage the use of Incapacity Benefit as an "early retirement subsidy".

The Incapacity Benefit's "all work test" will be replaced with a new employability test which takes into account people's capacity to work

The benefit will also be overhauled to ensure it is only paid to those who have recently been in work and paid National Insurance contributions

For the Liberal Democrats Mark Oaten said: "On the question of means-testing of Incapacity Benefit for those who have pensions, would it not have been wiser to have waited for the whole issue of second pensions to have been resolved first by this government, as clearly you are setting a possible disincentive for people to save by this measure?"

The mobility component of the Disability Living Allowance will be extended offering an extra £35 a week, for all three and four year-old severely disabled children.

Changes to benefits for the long term sick and those with disabilities comes as annual spending has nearly doubled since the early 1990s. Spending for 1998-1999 is expected to be £24.8bn.