The Government's plans to reform the welfare state are not cost-driven, the Prime Minister has said.

In an interview with the BBC's John Humphrys, Tony Blair said money needed to be "spent wisely" and merely stopping welfare costs growing any further would be a "considerable achievement".

He said costs would come down if people were given the chance to come off benefit and get into work and therefore Labour's welfare-to-work programme was a major component of reform plans.

Mr Blair said the right type of welfare provision needed to be designed for the future, but the welfare state should always help those who needed it most.

BBC Poltical Correspondent Jon Sopel reports on the controversial area of welfare reform (Dur :2'12")

The Prime Minister gave no details of planned changes to benefits. He said the case for reform needed to be established before the Government could move on to deciding the principles on which reform would be based.

But he said that the debate had already moved on and people realised that reform was necessary.

Mr Blair said details would follow later, but promised that any changes to the system would be done "fairly".

"We will do it after consultation, and working with the grain of the British people," he added.

Labour's manifesto commitment to keep uprating the basic state pension in line with inflation would be kept, he said.

But he would not speculate on whether it would still exist 25 years from now.

"The benefit of any pension reform you put through isn't going to come to this government. "It's going to come to future governments. But I think it's the right thing to do," Mr Blair added.

Dudley "roadshow" speech

Mr Blair began his crusade for welfare state reform in a speech on Thursday in Dudley, West Midlands.

Mr Blair told supporters the status quo was "not an option"

Nobody in need would be deprived but the status quo was not an option, he told Labour Party supporters.

"These things are always difficult when we begin them but I know and believe we can make a difference and make this welfare system better," said the Prime Minister.

Maintaining the 50-year-old welfare system in its present state was "not an option", the Prime Minister argued, saying: "You don't expect to buy the same model of TV or car as 50 years ago.

Mr Blair's speech was heard largely in silence, apart from two bursts of applause.

A warm welcome for the Prime Minister in Dudley

One came when he asked why his Government should defend a system damaged by 18 years of Conservative rule.

A second attack on the previous Government's management of the welfare state and the National Health Service again rallied the faithful.

The Prime Minister reminded the audience that Labour had created the welfare state and said he wanted the party to be able to look back and say it had the "courage and confidence to redesign it and reshape it for the modern world".
 

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