The Anti-Poverty Network criticised the plans
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Plans for welfare reform are "not based on the real world," the Northern Ireland Poverty Network has said.
The government has said it aims to force more benefit claimants to prepare for work or face losing payments.
However, the NIAPN said with an economic downturn, there was even less chance of people finding work.
Director Frances Dowds said that threatening ill or disabled people with benefit cuts "would not help them back to work".
"We know from our work with people living on benefits that most people want to work", she said.
"New Labour ministers quote schemes that have helped lone parents and disabled people into employment. Where these exist and where there are jobs, they can make a real difference.
"But very often, by the time the proposals reach NI, there are no resources attached - we get all stick and no carrot."
Private firms will be paid to get people back to work while those unemployed for a year will have to do four weeks' full time activity under the UK wide proposals.
Most people on incapacity benefit would be expected to attend job interviews.
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