'Millions to lose out with new benefits'

More than a million families will lose out under the Government's flagship benefit reforms, a leading financial think tank warned today.

The Institute for Fiscal Studies said that the planned "universal credit" - set to replace existing benefits and tax credits - would create clear winners and losers.

The shake-up could also discourage families with children from building up savings, the IFS said.

The IFS calculated that under the new system 1.4 million families would lose out, while 2.5 million families would gain and 2.5 million would see no change to their benefits. Among those who will be worse off will be lone parents and families with savings of over £16,000.