The government is to announce details of what is being described as the biggest shake-up of welfare in 60 years.

"Too many people, on benefits out of work, generations of them, do not think it worth their while to even enter the world of work. Now this will change," Work and Pensions Secretary Iain Duncan Smith told Sarah Montague.

The new system would set up a "contract" with unemployed people, to give them incentives to return to work and prevent them from turning down work they are able to do.

"Nobody will be worse off" under new system, he said. "Every single person… will be cash protected".

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