Controversial Tory welfare reforms have cleared the Commons despite Labour warnings that the measures will "penalise millions of working families".

The Government's plans include reducing the welfare cap, introducing a so-called "national living wage" and cutting tax credits.

They also aim to continue working towards "full employment" and offering more apprenticeships as part of the Welfare Reform and Work Bill, which MPs approved by 317 votes to 285 - majority 32.

But shadow work and pensions secretary Owen Smith argued against the "cruel, pernicious Bill", telling the Commons: "(It) breaks Tory promises in almost every clause and will hit almost 10 million families in Britain.

"It's also indiscriminate. It hits you if you're young, if you're old, it hits you if you're unable to work or if you're working every hour you can."

For the SNP, the party's social justice and welfare spokeswoman Eilidh Whiteford warned the legislation is the "centrepiece" of the Government's "austerity agenda" although she noted it is encountering difficulties after peers voted against tax credit cuts on Tuesday.

She said: "The Bill's measures as a whole are characterised by their arbitrary nature, a total lack of evidence that they will achieve their intended aims and above all that low income working households and the sick and disabled have been put on the frontline and are shouldering a wholly disproportionate share of these cuts.

"Cuts to tax credits are at the heart of this - seven million families set to lose an average of £1,300 each.

"I believe these measures are going to drive disincentives to work, compromise economic recovery and above all they're going to push hundreds of thousands of bairns into poverty."

But Work and Pensions Minister Priti Patel insisted the legislation will ensure the welfare system is "fair to taxpayers" while also supporting the most vulnerable.

She said: "It will help to ensure that work always pays more than a life on benefits and it will continue to build an economy that is based on higher pay, lower taxes and lower welfare."

Ms Patel added: "Our welfare 

reforms are focused on transforming lives by supporting people to find work and keep work. A focus on employment, fairness and affordability while supporting the most vulnerable.

"Making sure that people on benefits face the same choices as those who are not on benefits and in work."

Earlier, Labour failed in a bid to amend the Bill to ensure tax credit cuts are scrapped.

Mr Smith had warned families hit by the changes will still be poorer even if George Osborne brings forward increases in the minimum wage, the personal tax allowance and free childcare to next year.

Following a stinging double defeat in the Lords over the plans on Tuesday, the Chancellor promised to bring forward transitional measures to help ease the pain of the cuts for the less well-off.

But Mr Smith described as a "con" the Government's claim that its measures to boost incomes and help families would offset the cuts.

The £4.4 billion reduction in tax credits is due to take effect from April 1 2016, leaving 3.3 million in-work households £1,300 worse off, according to the House of Commons library.

The Bill will now progress to the Lords for further scrutiny.