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Furious Labour MPs yesterday launched an all-out attack on sweeping Tory plans which could kill off the welfare state.

The uproar came after the leaking of a Treasury document detailing astonishing proposals to dismantle the current benefits and education systems.

The bombshell dossier calls for widespread privatisation and the State to wash its hands of the needy and vulnerable.

It covers the scrapping of State pensions and unemployment benefit, as well as stating that higher education is now "unaffordable" to the Government.

Labour said the report showed the Tories were "stampeding to the right" with a secret agenda. In the Commons, Shadow …