Proposed reforms to the welfare system could help claimants, communities and business, according to one expert.

John Cridland, deputy director of the Confederation of British Industry (CBI), believes that making people to work for their benefits will assist them in developing the skills they need to enter full-time employment.

He said: "Taking on staff with limited recent work experience and often complex personal problems is not straightforward, and support is needed both for employer and applicant.

"The scheme must deliver candidates who are ready for sustainable employment."

The proposals will also help firms recruit more staff from local communities, something which they are keen to do, he added.

However, Brendan Barber, general secretary of the Trades Union Congress, disputes his claims.

Mr Barber thinks that welfare to work schemes could see low-paid workers lose their jobs as the tasks the carry out are handed over to benefit claimants.

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