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Families will be told that they should work at least 35 hours a week, rather than rely on state handouts, if they want to avoid their children living in poverty.

UK employers are continuing to hire new staff but are becoming more cautious about doing so, two surveys suggest. A report by the Recruitment and Employment Confederation (REC) and KPMG showed a modest rise in permanent placements in May, but at the slowest growth rate of the last five months. While a Manpower survey showed a balance of +1% of employers were planning to hire staff.

Unions say firm involved should be banned from Olympics, but No 10 says unpaid jobseekers' treatment was a 'one off'. Some of those hired as stewards had to spend the night before the jubilee pageant sleeping under London Bridge.

The Prime Minister's spokeswoman says treatment of unemployed people who worked as stewards was a 'one-off'. Two unpaid stewards said they had to camp under London bridge before the event, change clothes in public and had no access to toilets.