PRIME Minister Tony Blair said yesterday the Government was trying to recreate a welfare state for today's world and improve the lives of those who live in poverty.

The premier was speaking at a breakfast meeting which coincided with the launch of the Department for Work and Pensions' sixth annual report on poverty, Opportunity For All, and a report by the Social Exclusion Unit called Breaking the Cycle.

Mr Blair told the meeting at 10 Downing Street - consisting of people who work in areas including health, education and employment - that the Government had a record on poverty and social exclusion of which "we can be proud", with immense progress made.

Breaking the Cycle takes stock of the Government's work so far, while Opportunity For All from the Department for Work and Pensions contains 58 indicators on poverty and social exclusion.

According to the Government, the reports show the tide is turning on some of Britain's most deep-rooted social problems.

In the North-East, Opportunity For All claims a number of improvements in levels of employment, educational attainment among children and also an increase in household incomes for the poorest pensioners.

The proportion of people of working age in full-time jobs is said to have increased from 66.7 per cent to 69.3 per cent from April 1997 to April this year.

The number of 11-year-olds achieving a level four or above in English rose from 62 per cent in 1998 to 77 per cent, and in mathematics from 58 per cent in 1998 to 75 per cent.

Government policies are also said to have helped 123,000 of the North-East's worst off pensioners see their household incomes rise to at least £102.10 for single people and £155.80 for married couples.