Brown: "Those most in need will benefit" (8',07'')

The Chancellor of the Exchequer, Gordon Brown, has stepped into the row over changes to the system of welfare benefits that has been convulsing the governing Labour Party.

Mr Brown, in an interview with The Times newspaper, said the existing system had failed to eliminate poverty.

"The reform of welfare is based on principle. It is not costs-driven; it is not economy-inspired," said Mr Brown.

Disabled protestors take their concerns to Downing Street

"It is inspired by the need to have a modern system that meets the needs of people and provides the opportunities to them that they need."

He also sought to reassure doubting Cabinet colleagues that the planned shake-up of the welfare state would be carried out with sensitivity, promising it would not turn into an "indiscriminate slash and burn exercise".

"This is the biggest reform for 50 years. It is something we approach with proper sensitivity to the needs of those people who are dependent on the welfare state," said Mr Brown.

Positive reaction to Chancellor

Mr Brown's efforts appear to have reaped some results.

The Archbishop: Don't make cuts that hit the needy

Britain's Archbishop of Canterbury, Dr George Carey, said he "sympathised" with the Government's plight but cautioned that the Government must strike a delicate balance between modernising the system and protecting society's most vulnerable.

"On the one hand I think it is important to reform the welfare state _ The other imperative is to care for the needy, the marginalised, the disadvantaged and therefore the Church and others would be very concerned if that imperative is ignored."

He added: "I'm sure it is not the Prime Minister's intention to do so."

Liberal Democratic Leader Paddy Ashdown promised his backing for reform, although he did criticise the Government for "woefully mishandling" the welfare review so far.

Mr Brown's comments in The Times came in response to a leaked letter from the Education and Employment Secretary David Blunkett to Mr Brown at the weekend. Mr Blunkett suggested there were concerns within the Cabinet about the review.

On Monday disabled protesters lashed out at the Government, splattering the gates of Downing Street with blood-red paint.

The Government, however, appears undaunted by such controversy.

And in an interview on BBC radio, Mr Brown even fell short of an outright guarantee of existing levels of benefit.

"Those who can work should have the opportunity to work," he said.

"Those who cannot work, are incapable of working, will get a fair deal from this Government because we will look at how all public expenditure resources, and not just benefits, can help those most in need."

Blair: "I want this country to be a beacon in the modern world", (6'31'')

Prime Minister, Tony Blair, also insisted there was no cabinet split and that reform was needed.

"Change there should and must be," he said.

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