In his first speech to a Labour conference in his new post as Social Security Secretary, Alistair Darling told delegates not to doubt the government's determination to reform the welfare state.

Mr Darling said: "We will examine every single benefit to ensure that they meet the needs of the modern welfare state," adding, "We will protect existing beneficiaries. But our determination to reform is not in doubt."

He said that the current system, set up by a Labour government after the Second World War, was out of date.

"As a result, there are some people poorer than they need be, some are dependent on benefit when they need not be and others neglected when they should not be."

A modern welfare state

"The easy option would be to carry on as we are - to patch and mend at best. But we cannot have a modern Britain without a modern welfare state.

"To say we can't do better then the current system is a damning admission of defeat. To give up on reform would be to betray both those who put their trust in us to reform and the generations to come."

But looking forward to the key pensions Green Paper due for release in the autumn, Mr Darling said:

"In retirement the basic state pension remains the foundation but that alone is not enough. We know the problem. There are too many people who can save for their retirement who are not saving at the moment and who need to save more. They have a responsibility to do so.

Rights and responsibilities

"And in turn they have a right to expect the government to ensure their pensions are secure. And there are those who cannot save and who are poor in work and if we do nothing will be poor in retirement."

He added: "We must deal with poverty in retirement both now and in the future.

The reformed welfare state would comprise responsibilities as well as rights, he said.

"There is a deal. People have a right to expect a welfare state modernised and reformed for the needs of the next century.

"In turn they have to face their responsibilities and take up the opportunities available to them, government and the people acting in partnership."