SOCIAL welfare organisations have warned the Government's benefit reforms will not work without new jobs.

They say the proposals, outlined by Iain Duncan Smith yesterday, are based on the wrong assumption all people are motivated by money and stay on benefits because they are financially better off.

The Work and Pensions Secretary's consultation paper, 21st Century Welfare, outlines options to rectify the "illogical" position of benefits paying more than work.

The proposed changes aim to simplify the system and make it financially worthwhile for people on benefits to work.

In Stoke-on-Trent, 35,150 people, almost a quarter of the working-age population, exist on some form of unemployment benefit.

Gill Brown, chief executive of homeless charity Brighter Futures, based in Hanley, said the problem was more to do with the lack of jobs in the area.

She said: "Is it to do with a work ethic, or is it about ensuring people have the opportunity to work? It wasn't the people in Blurton and Bentilee who asked for the pot banks to be closed.

"In my experience of my customers, they are keen, willing and motivated. They just need to be given the right opportunity.

"The Government should concentrate more on creating high-value jobs in the area before introducing radical reforms like this, which will penalise the most vulnerable."

The Government believes that because of the effect of 'marginal tax rates', the combination of lost benefits and the tax on earned income, millions of people calculate it is not worth taking a job.

It is proposed that when earnings are not much greater than benefit entitlement, they should be topped up.

Ministers want a system where claimants would be better off by up to 40p in every pound extra they earn.

Simon Harris, chief executive at Stoke-on-Trent Citizen's Advice Bureau, said: "What they are proposing is the Holy Grail of benefit reform. This has been attempted in the past, but people have lacked the money or political courage to succeed."

But he criticised the theory behind the reforms that everyone was motivated by money.

He said: "Recent figures show there are nearly five people chasing every job at the Jobcentre.

"Bearing in mind the job losses we are going to experience in the public sector, employment is going to rise significantly over coming months.

"You have to question whether enough jobs will have been created by the time these radical reforms have been brought in."

Geoff Cubley, whose son Chris nearly died after an unprovoked assault outside Valentino's nightclub in Hanley in 1996, said he did not agree with the proposed change to the system.

Since the attack the 34-year-old, of Abbey Hulton, has had to deal with a range of physical and mental disabilities.

He recently had his disability living allowance stopped.

Mr Cubley, aged 63, of Rotterdam Road, Poolfields, said: "Before his accident, my son had a really good work ethic and worked all his life in vehicle maintenance in mechanics. The truth is, he just can't work now."