Work and Pensions Secretary Amber Rudd warned a "no deal" Brexit will be the worst possible outcome for the country as she hinted at changes to the controversial Universal Credit benefits scheme.

Talking to Sky News, the Hastings MP, who has a wafer-thin majority, described her role as "the most important job in Government".

She told the broadcaster: "I remain very committed to Universal Credit.

"But I am looking at ways to demonstrate to people that it is fair and compassionate, and with that in mind I am making some changes.

"Overall, my aim in doing this reset is effectively to build confidence in Universal Credit."

She referred to the controversial extension of the two-child benefit cap which means child benefit is not paid for a third or subsequent child which was due to take effect next month.

The Department for Work and Pensions estimates 15,000 families in the UK could benefit from the policy being dropped.

Ms Rudd added on Sky News: "With the fairness of Universal Credit in mind, I decided to make the changes.

"It is right we have a two-child policy when people are thinking about having a third child.

"People on low income and benefits need to consider what sort of funds they have got.

"But I don't think it is right that you have this two-child policy that was introduced recently acting retrospectively for people who might have three, four or even five children."

She concluded: "The worst outcome will be a no-deal Brexit where the economy will be adversely affected."