As part of the reforms, the Government will consider scrapping the £20bn a year tax credits scheme and look at ways to change the tax system so that lone parents who work more than 16 hours a week are not penalised.
Mr Duncan Smith also hinted in his speech last week about plans to make the welfare system simpler and more transparent.
He said, 'By putting a dynamic approach to benefits in place, we will make sure that individuals and households are always better off in work so that they can take a sustainable path out of poverty.'
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