Peter Hain, the work and pensions secretary will today unveil plans to ensure 140,000 more lone parents return to work as part a shake-up of the government’s welfare to work policies.

Hain will say that that 70,000 children will be lifted out of poverty by changes intended to turn benefit claimants from "passive recipients into active job-seekers".

He will contrast Labour's approach with a more hardline stance being suggested by the Conservatives, based on "workfare" schemes in US states such as Wisconsin.

Hain will argue that the government’s approach offers the possibility of both reducing poverty and achieving full employment.   Hain’s plan proposes 50 changes to the benefits system to take effect over four years. Hain will say that he will look at possible ways to streamline the welfare state and increase incentives to work. The strategy will include the use of private firms and voluntary groups to provide intensive help for jobless people on the New Deal scheme.