The raging debate over the government's controversial welfare and benefit reforms took centre stage in Kent today as Chancellor George Osborne tackled his critics head on.

In a defiant speech defending the shake-up, the man who looks after the public purse told an audience of workers at the Morrisons distribution centre in Kelmsley, near Sittingbourne, the government was making work pay and rubbished complaints from critics that the changes would punish the poor.

But he was more guarded when it came to when the county might see an upturn in new jobs, saying he was optimistic but "we are only going to create more jobs if we have the incentives where businesses can get on."
A series of ground-breaking welfare reforms came into effect this week – including the controversial changes to housing benefits and a cap on the amounts families can claim.

Mr Osborne (pictured right) attacked what he described as the "shrill, ill-informed nonsense" of his opponents – including not just his political foes, but charities and welfare groups.

But he sidestepped the question about whether or not he could live off £53 a week – perhaps conscious of the difficulty his colleague, the welfare minister Iain Duncan Smith, got into when asked the same thing. He said he could if he had to – prompting a petition signed by thousands inviting him to try.

Challenged on the same issue, the Chancellor said it was "not sensible" to reduce the debate to one individual's circumstances.

"For too long, we have had a system where people who do the right thing, get up in the morning and work hard, get penalised for it while others who do the wrong thing get rewarded. This time, nine out of 10 people will be better off as a result of the changes we are making... we are making work pay."

Chancellor George Osborne talks to staff members at Morrisons distribution centre in Kemsley before a keynote speech

The benefit system has become so complex, it had reached a point where it was "better off for people to be on the dole".

On the so-called "bedroom tax", which is said to affect 17,000 homes in Kent and Medway, he argued there was a mismatch between those who needed social housing and were currently unable to get it.

"We have 1.8 million families waiting for social housing and yet we have a million spare homes in the sector."

On change to the maximum amount families will now be able to claim in benefits, Mr Osborne said: "We are simply asking people to make the same choices as working families traditionally do. These are the realities of life for working people and they should be the realities for everyone else to."

He also confronted the debate over the tax break being given to high earners, with the scrapping of the 50p tax band.

"We cannot have a top rate of tax that discourages people to live here and create jobs. If you don't believe me, ask France."

But Mr Osborne's "heart and minds" appeal over welfare changes appeared not to be as much as a priority to some voters. In an open question and answer session after his speech, workers tackled the Chancellor on a referendum on the EU and what he was doing to stop child tax benefits being sent to families abroad.

Our political editor Paul Francis will be tweeting from George Osborne's speech - follow his updates @PaulOnPolitics.