People claiming the new universal credit benefit find work quicker, and earn more, than those on jobseeker's allowance (JSA), the government says.
Its analysis suggests claimants in pilot areas were 13% more likely to have found work within four months than similar groups claiming JSA.
Ministers say the new payments - to be rolled out nationally from Monday - have a "real impact on people's lives".
Labour said universal credit was a "failing programme".
'Waste and delays'Universal credit replaces six different benefits, including housing benefit, JSA and tax credits, and is currently available in nearly 100 job centres.
About 50,000 people in selected areas have claimed it since it was introduced in April 2013 - far fewer than the government originally said would be getting it by now.
Technological problems have caused delays and forced ministers to write off tens of millions of pounds.
But from Monday the benefit will be made available in 150 job centres over the next two months, with all job centres due to be covered by next year.
Ministers say that, once fully implemented, universal credit will boost the economy by £7bn every year.
Work and Pensions Secretary Iain Duncan Smith said: "It is very impressive that we have seen these results so soon and that this is having a real impact on people's lives.
"This is a cultural change which will alter the landscape of work for a generation. This government's welfare reforms have saved the taxpayer £50bn and restored fairness to the system."
The research tracked claimants between July 2013 and April 2014 in Warrington, Wigan, Oldham and Ashton-Under-Lyne.
Its results suggested those receiving universal credit were more likely than JSA claimants to believe the benefit system was encouraging them to find work, take any job they were able to do and spend more time looking for work.
But Labour said the government - which had originally promised that universal credit would save £1.7bn by cutting errors and fraud - had now cut that target by two thirds.
Shadow work and pensions secretary Rachel Reeves said: "The only person who believes Iain Duncan Smith's promises on universal credit is Iain Duncan Smith.
"Iain Duncan Smith promised one million people would be claiming universal credit by April 2014. But the latest figures show only 26,940 people on the new benefit. At this rate it will take 1,571 years to roll out universal credit.
"Labour wants universal credit to work and we'll call in the National Audit Office to do an immediate review of this failing programme to get a grip of the spiralling waste and delays."
Are you claiming the universal credit benefit? You can email haveyoursay@bbc.co.uk with your experience. Please include a telephone number if you are willing to be contacted by a BBC journalist.
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