Launching the Welfare Reform Bill with the Prime Minister, Work and Pensions Secretary Iain Duncan Smith said it would be the biggest shake-up of the system for 60 years.
The bill aims to simplify the benefits system by, among other things, introducing the universal credit and capping benefits at around £26,000 per family.
Alison Garnham, chief executive of the Child Poverty Action Group, said ministers are right to aim for much better back-to-work support and a benefits system that makes it pay to work.
But she said "scant detail" and "funding shortfalls forced by the Treasury" leave it in major doubt whether it will help claimants gain work.
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