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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A young couple from Wallsend - Abbie Douglas and Sam Younganan - describe hearing gun shots in the Tunisian resort of Sousse
Temperatures on the rise from Tuesday. Some very warm and muggy nights to come
A British holidaymaker captured the scene on a Tunisian beach after a gunman opened fire at a beach resort in Sousse on Friday.