Centre for Policy Studies argues that all claims should be administered by a single agency

The benefits and tax credits system is too complex and should be radically simplified, a leading think-tank has argued.

A study by the right-wing Centre for Policy Studies (CPS) said the complexity of the system makes it unhelpful for claimants and excessively expensive for taxpayers.

The report, Benefit Simplification How and Why It Must Be Done, called for all claims to be administered by a single agency and said applicants should only be required to fill in one form.

The author of the report, David Martin, said that the current system increased the risk of error, overpayment and fraud and made it harder for the government to track spending.

He said: "It is time to take the hard practical decisions so that a new unified and simplified benefits system can emerge. And we need this soon."

He added that too much time and money was wasted on re-evaluating information already submitted by claimants.

The total social security bill is predicted to reach £186bn by 2010, but Martin argued that his proposed reforms could significantly reduce spending in the future.

The director of the CPS, Jill Kirby, said: "In its 1997 manifesto, New Labour promised to 'decrease the bills of economic and social failure'. It has failed to do so.

"But for any reform to be effective, simplification is the essential first step."

A spokesman for the Department for Work and Pensions said that the government was simplifying the benefits system where possible but added that a "one-size-fits-all" approach was not possible when the government was focused on individual needs.

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