And outgoings are falling as the number claiming jobseeker's allowance, the main out-of-work benefit, has dropped by 300,000 from its peak.
Bidding to counter Tory jibes that Labour is the "party of welfare", Mr Miliband called for 18 to 21-year-olds to be given a "youth allowance" rather than out-of-work benefits.
David Cameron on Tuesday hailed official figures showing more than two thirds of those seeking to claim employment support allowance, the chief out-of-work benefit for the disabled, are found to be fit for work, or drop their claim before taking the government's fitness-for-work test.
(The broader plan to introduce a single "universal credit" to replace multiple allowances for those out of work has created its own new network of unintended complexities and forthcoming climb-downs).
Analysis by the Institute for Public Policy Research suggested the partial U-turn would cost £700m a year by 2020/21 — compared with the £3bn a year taken out of work allowances previously announced.
It says: "The net impact of changes to universal credit announced in the 2015 summer Budget on work incentives is largely negative, due to significant reductions in the generosity of work allowances [the amount people can earn before their state payments are reduced]".
They include Jobseeker's Allowance, employment and support allowance, and income support, as well as maternity, paternity and adoption pay for those in work, and maternity allowance for those out of work.
Of the respondents, 55% said they received less than GHC 500 as a monthly salary and more than 80% said they did not receive any form of work allowance outside the regular monthly salary.
Measures contained in the Welfare Reform Bill, to be debated by MPs later, mean non-means-tested out-of-work Employment Support Allowance (ESA) will only be paid for a year.
Since 2010 there has been all-out war on our members' conditions of work: car allowances have been cut and overtime and annual leave pay lost.
