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 study by the University of Oxford forecasts an increase of more than half a million foreign-born people in England between 2011 and 2014.
Paul Brand is joined by four new Parliamentary candidates for a lively debate on the economy and immigration. Watch the programme here:
A look ahead at the forecast for the Border region.