The growth of means testing gives people disincentives to be honest and penalises savings, as well as discouraging efforts to find work, he said.
This means the welfare system contains the seeds of its own destruction, he said. Mr Field, chairman of the Commons social services select committee, proposed an alternative insurance-based scheme.
The housing benefit system is 'massively riddled by fraud', he said. Politicians have failed to realise that local authorities are up against sophisticated organised fraud.