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But environmentalists argue that the reforms do not dispatch underlying questions about the ETS's effectiveness as 400m allowances will be allowed to trickle back on to the market before 2030.
Jobseekers' allowances will be capped.
Later, structural changes, including permanently reducing the number of allowances, will be considered.
Perks such as paid leave and travel allowances will be streamlined to conform with EU norms.
A portion of these so-called allowances will be allocated to utilities, manufacturers and others; the remainder will be auctioned off.
Similar handouts, which have become known in the City as "allowances", will be given to about 1,000 staff at Barclays and some 75 bankers at Lloyds.
Similar(24)
A new enterprise allowance will be created.
Claimants of incapacity benefit (renamed the employment and support allowance) will be medically reassessed by 2013.
It is likely the allowance will be handed to fewer than 2000 staff at Barclays.
The most obvious one is how much the new allowance will be.
The allowance will be lost altogether for those with income above £140,000.
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