David Cameron has defended the government's welfare reforms, saying they could help individuals and families get out of "the poverty trap".

At a No 10 news conference, the prime minister said its plans were "bold and radical" but the gains could be huge.

Simplifying benefits and ensuring people were better off in work than on welfare could transform lives, he said.

All welfare changes, including child benefit cuts, had been fully discussed with Lib Dem ministers, he insisted.

But Labour has said ministers are desperately hunting around for savings without enough thought given to their impact.

In his first meeting with the party's MPs and peers since becoming leader, Ed Miliband promised to stand up for the "squeezed middle" - the people who, he said, worked hard to pay their way to get by.