Today's Queen's Speech gave the first indication of how the government plans to save £12billion a year from the welfare budget – as set out in the Conservative manifesto.

In Her Majesty's 'most gracious speech to Parliament' this morning – the first fully Conservative Queen's Speech in almost 20 years – she confirmed the Government would 'continue to reform welfare' with a crackdown on benefit abuse.

A Full Employment and Welfare Benefits Bill will be brought forward introducing a raft of new measures which aim to slash the annual benefits bill, pushing more people into work.

Working-age welfare – including tax credits and child benefit – will be frozen for two years from 2016-17. New legislation will also be introduced to lower the benefit cap so the maximum a family can receive in a year will be £23,000 a year – down from £26,000.

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A Full Employment and Welfare Benefits Bill will be brought forward introducing a raft of new measures which aim to slash the annual benefits bill, pushing more people into work

However, critics say the reduced cap is still too high. Receiving £23,000 a year in benefits is the equivalent of a £29,000 salary before tax. This remains more than the average wage in Britain, which stands at just £26,000.

Benefits for under-21s will also be curtailed, with a new 'earn or learn' principle – meaning youngsters will be forced to take a job or go to college after leaving school at 18.

Under 21s will be stopped from claiming housing support and if they have been out of work for six months forced to go on an apprenticeship or start training.

If they refuse they will have to do community work to receive their benefits.

Jon Sparkes, chief executive of charity Crisis, said: 'The Government's plan to cut housing benefit for 18-21 year-olds could spell disaster for thousands of young people who cannot live with their parents.

'At an age when other young people are leaving home to travel, work or study, growing numbers could be facing homelessness and the terrifying prospect of roughing it on the streets.'

In Her Majesty's 'most gracious speech to Parliament' this morning – the first fully Conservative Queen's Speech in almost 20 years – she confirmed the Government would 'continue to reform welfare' with a crackdown on benefit abuse

Benefits for under-21s will be curtailed under today's proposals - with a new 'earn or learn' principle introduced – meaning youngsters will be forced to take a job or go to college after leaving school at 18

Today's crackdown comes amid mounting criticism over the government's failure to spell out how it will cut the welfare bill.

The respected Institute of Fiscal Studies said the planned £12billion cuts will either increase poverty or undermine ministers' claims that they will 'make work pay'.

In a paper the respected independent economic institute indicated that the government has yet to name around 90 per cent of its planed welfare cuts.

The IFS says around £10.5billion of the £12billion welfare cuts planned by the Tories are yet to be named, amounting to a remaining 87.5 per cent.