'Every penny matters': George Osborne borrows Morrisons slogan in 'man of the people' speech He said 'vested interests always complain' about welfare shake ups 14million households will be better off, the Chancellor announces Defends cutting the 50p top rate of tax for highest earners By Matt Chorley and James Chapman Benefit claimants are being asked only to make "some of the same choices working families have to make every day," George Osborne insisted yesterday. Accusing his critics of talking "ill-informed rubbish," the Chancellor said most voters understood the need to change a welfare system that Labour allowed to spiral so far out of control it cost one pound in every six paid in tax by workers. He said the Government's reforms, including a cap to ensure no one on benefits can get more than the average working family, were restoring "common sense and control." Chancellor George Osborne defended changes to the benefits system which he said were designed to back people who work hard and want to get on Mr Osborne sought to present a more populist image, addressing workers at the Morrisons supermarket distribution centre in Sittingbourne, Kent He conceded the shake-up would mean welfare claimants having to make choices such as living in a "less expensive house, to live in a house without a spare bedroom unless they can afford it, to get by on the average family income." But he insisted: "These are the realities of life for working people. They should be the reality for everyone else too. I'm proud of what we're doing. Speaking at a supermarket distribution centre in Kent, the Chancellor warned those opposing the Government's reforms they were "out of touch" with ordinary families whose taxes paid for the benefits system. In 2010, when Labour left power, payments to working age families cost a staggering £90billion, the Chancellor said. Mr Osborne suggested his approach to welfare cuts was inspired by the Morrison slogan Mug's game: The Chancellor drank tea with staff at the site, as he argued that capping benefits was fair for those who worked and paid taxes That means about one in every six pounds of tax working people like you pay was going on working age benefits. To put that into perspective - that's more than we spend on our schools," he added. For too long, we've had a system where people who did the right thing - who get up in the morning and work hard - felt penalised for it, while people who did the wrong thing got rewarded for it. George Osborne's hopes of avoiding an unprecedented triple dip recession are on a knife-edge. The British Chamber of Commerce yesterday predicted that the economy grew from January to March, averting the devastating second consecutive quarter of decline would have officially returned the UK to recession. Export deliveries and orders from the services sector - which accounts for more than three quarters of UK economic output - rose close to the all-time highs seen in 1994 during the first three months of 2013, the BCC said. John Longworth, director general of the BCC, said: 'We should not be satisfied with a long and tortuous road to recovery. These results provide a glimpse of the as-yet-distant sunlit uplands of recovery - businesses up and down the country are working hard to drive the economy, create jobs and export, but they cannot accelerate this process alone. However, fears of a triple dip recession were fuelled by new figures which suggested Britain's manufacturing sector contracted in the first quarter following another month of sliding output. The sector's 'winter of discontent' continued into March as overall activity slumped for the second month in a row, with a worse-than-expected headline reading of 48.3 - below the 50 level which separates growth from contraction, the latest Markit/CIPS purchasing managers' index (PMI) revealed. The Chancellor was scathing about the "vested interests" who complained with "depressingly predictable outrage" about every change. "In recent days we have heard a lot of, frankly, ill-informed rubbish about these welfare reforms," he said in response to criticism from Labour, charities and some church leaders. Some have said it's the end of the welfare state. That is shrill, headline-seeking nonsense. I will tell you what is true. Taxpayers don't think the welfare state works properly any more. Mr Osborne said the Government had to act to reform a system that was "fundamentally broken," leaving people better off on the dole than if they went out to work. "Defending benefits that trap people in poverty and penalise work is defending the indefensible," he said. A raft of changes comes into force this month, including a £500-a-week cap on household benefits and an average £14-a-week cut in housing benefit for council tenants who insist on a spare room. The first trials will be held of a universal credit, which replaces the main out-of-work benefits and is designed to ensure it always pays to take a job or work more hours. For Labour, Shadow Chancellor Ed Balls insisted: "The benefits bill is rising under this Government because our economy is flatlining, inflation is rising and unemployment is high. The best way to get the benefits bill down is to get our economy growing strongly and get people back to work. Anne Marie Carrie, head of the children's charity Barnardo's, appealed to ministers to ditch a 1 per cent cap on benefit increases, which is well below the rate of inflation. Disability living allowance is being replaced by a personal independence payment. Mr Osborne said that for too long people who work were penalised to fund handouts for the jobless Before delivering his speech on benefit changes, Mr Osborne unveiled a plague to officially open new City watchdog, the Prudential Regulation Authority (PRA), as the Governor of the Bank of England Mervyn King, second left, and Andrew Bailey, left, the Chief Executive of the PRA, look on