George Osborne
Media playback is unsupported on your device
Video

Spending review: Osborne announces welfare changes

The Chancellor of the Exchequer George Osborne says he is introducing the greatest reform to the welfare state in a generation, with £7bn in welfare cuts.

It includes reforms to job seekers' allowance, housing benefits and child care benefits.

"No family that doesn't work will receive more in benefits than the average family that does go out to work" said Mr Osborne.

"Taken together, all these welfare measures I have outlined will save the country £7 billion a year," he added.

Go to next video: Osborne on 'hard road to better future'