David Cameron says he wants to end the "entitlement culture" and that scrapping housing benefit for under 25's will help to achieve that.
The MoD confirmed more than a thousand military personnel will face compulsory redundancy as part of cuts to the armed forces.
Britain has fallen back into recession. More cuts to come in the North East.
A dark cloud hangs over the region today with the news that more than a thousand armed service personnel are facing compulsory redundancy.
The Defence Secretary Phillip Hammond confirmed today that the bulk of the cuts will come from the Army. Overall the Ministry of Defence plans to shed 3,800 posts
A spokesman for MoD said there was "still some way to go" to bring the size of the Army down to 82,000 and confirmed that decisions on how to achieve those cuts "are yet to be taken."
Details of exactly what regiments will be affected have still not been released. But the North East and North Yorkshire are traditionally areas where the Army recruits heavily. Catterick Garrison in North Yorkshire meanwhile is the largest British army base in the World.
MPs have clashed over possible job losses in the fire service. A host of Labour MPs questioned ministers from the Department for Communities & Local Government. Teesside MP Alex Cunningham said Cleveland fire service has to deal with the highest industrial risk in Europe. 180 jobs are at risk there.
Newcastle Council says it's dealing with Government cuts by trying to offer its own commercial services to the public to make money.
It says there is a place for full private contracts, but that it is looking at voluntary partnerships and its own business ventures as "another way".
Northumberland County Council says its goal is to safeguard jobs.
– Northumberland County Council
“We are simply having informal discussions with a range of potential partners on how we can deliver services more efficiently...but we need to be clear that this is only one of many options we are considering."
Northumberland County Council has sent out hundreds of letters to its staff and councillors to begin discussions on whether to allow more private companies to run its services.
The council has to save another £70m over the next three to four years.
MPs at Westminster will discuss how the government's financial decisions are affecting the North East. The special 90-minute debate will be led by the Gateshead MP Ian Mearns, who will be joined by some of his Northern colleagues.