The Chancellor's plans to increase benefits by only one per cent over the next three years means they will be outstripped by inflation, which is forecast to be 2.7 per cent.
George Osborne's announcement has led to fears that the most vulnerable people will be hardest hit.
Watch Rachel Bullock's report from Teesside, which already struggles with high levels of deprivation and unemployment:
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£100,000 of vital maintenance work is being carried out on the Tees Barrage.
Alan Barnes, the Gateshead man given £330,135 by well-wishers after being mugged, plans to sell his home to move to the Shetland Islands.
Higher breakfast sales and a bigger range of healthier products helped it grow underlying profits by 51% in the first half of the year.