Tony Blair has said the next wave of reforms to the welfare system will aim to fundamentally change the relationship between the individual and the state.

Addressing an Institute for Public Policy Research event, the prime minister said his third term mission was to create an "opportunity society".

Blair promised welfare reforms that would give people active assistance rather than merely respond to their problems.

Following up on the five year plans announced in July, he made new commitments on the NHS, education and law and order.

He said that by 2008 all patients in England would be able to choose the hospital where they wanted to be treated.

He also pledged to allow more independent provision but said they would "work within the NHS and provide care free at the point of delivery".

In education he promised to increase vocational training to allow 16-year-olds to go on to apprenticeships.

On law and order Blair pledged to complete "the complete reorganisation of the criminal justice system" and fund more community policing.

Critics

Blair criticised what he called Conservative "minimalist" policies and critics in his own party, arguing that the greatest advances have been made by the boldest moves.

Big answers and vision are needed to complete new Labour's changes, according to the prime minister.

After setting out what he said were the achievements of his first two terms, he said it was time to take things further.

"We have made real progress with unprecedented resources pouring into public services," he said.

"We have made progress but for the last 30 years social mobility has been practically static. We need to change that to increase prosperity."

"We need to use the experience of the first two terms to drive through lasting change in the third," he added.

Conservative criticism

Ahead of the prime minister's speech, shadow work and pensions secretary David Willets accused the government of failing to rein in the escalating costs of the welfare state.

"Tony Blair is once more promising to save on welfare bills and spend the money elsewhere," he said.

"This is what he always promises and has never delivered.

"The reality is that the total welfare bill has risen by £42 billion since 1997 - a bigger increase than in either health or education.

"Why should we trust Tony Blair to reform welfare when he has had so many attempts already and failed to deliver?"

But Blair described the Tory interpretation of the figures as "typical slight offhand" and said where there had been increases it was because the investment need to be made.