I'm not sure it's right to describe the cuts as "Modest". There were already cuts being instituted towards the end of the Labour government, and these certainly were modest. The incoming government extended these cuts, in some cases very significantly. Parts of the DWP in particular have come under attack to the level of 40% or so in staffing cuts. And this at the same time as two major benefits reforms on the trot. IN the first case, the transfer of people on the old Incapacity Benefit to the new (Labour-created) Employment and Support Allowance, which is a switch that is still going on; and then the switch-over from seven benefits to Universal credit, including Housing Benefit (administered previously by all the local authorities), Tax Credits (HMRC) and some of the new ESA. This is a massive administrative task, and there are now a great deal fewer people to accomplish it.
At any rate, such extensive cuts sometimes make no sense and undermine what else the government is trying to achieve. This was a lesson you would have thought the Conservatives learned in the early 80s, after yet another set of massive cuts to the Public Services -- followed rather quickly by a recruitment drive as they realised that they needed these people to do the work they wanted doing.
I've probably gone off on a tangent here, but never mind -- the cuts are certainly rather more than just modest, and not necessarily targeted very well either. It's hard not to see a certain amount of philosophy, rather than realism, in the way the cuts are targeted. Some of the measures taken are precisely the same as those that were intended, and abandoned, during the Major Government, so it's almost as if the current lot are using the Economic crisis as an excuse to force through cuts they were going to make anyway.
I'm not looking forward to the prospect of this government continuing. On the other hand, I'm not exactly confident about the most likely replacement, either...