Our approach has been based on the principle that the best welfare policy of all is work and throughout this process of reform we have sought to match rights with responsibilities. These reforms have made a huge difference. Britain now has the highest employment rate of any G8 country. Youth unemployment has virtually been eradicated. The number of people claiming incapacity benefits is falling after decades of rapid increases. There are now a million fewer people of working age on benefits. The progress we have been able to make has depended on a strong economy and a dynamic labour market. Both have been achieved and sustained since 1997, but there is more to do. Our economy and society are changing fast. Our welfare state must help us respond to these changes. It must focus its energy on tackling poverty and social exclusion. Society has a responsibility to support those unable to support themselves. It should help support people in acquiring the new skills they need for the jobs of the future.