A THINK tank headed by Iain Duncan Smith publishes its long-awaited report on welfare reform today (Monday).

The Centre for Social Justice - which was created by the Woodford Green MP - will unveil 'Dynamic Benefits' to the media, setting out a range of ideas for getting the long term unemployed back into work.

According to its authors the main idea behind the reforms is to make work more financially attractive than benefits for the low-skilled.

The work contains proposals for limiting the number of benefits on offer to two from the current 51, and subsidising people in low paid jobs to stay in work.

Mr Duncan Smith said the £2.7bn plan was designed to rebuild the "work habit" among the long term jobless - and believes it could get 600,000 extra households back into employment."

Critics say plans outlined in the report could result in vulnerable people being 'bullied' into unsuitable jobs.

The report will now be considered by David Cameron and other senior Tories for possible adoption as party policy going into the next election.

In a statement in the report Mr Duncan Smith said: "This review marks a watershed for Britain’s benefits system.

"The recommendations hold to the simple principle that work is the sustainable route out of poverty.

"We believe the group’s success in devising a system, which smoothes out the participation and marginal tax rates so that there is no financial disincentive to work, should be taken seriously by members of every political party.

"Unless we put the system right now, we run the risk of increasing the number of residually unemployed, only this time it will manifest itself as large numbers of younger people permanently excluded from gainful employment.

"That is why we simply cannot go on talking about the importance of getting people into work while we persist in creating disincentives for the very people we say should be in work."