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Fears 'most vulnerable' will be hardest hit after Government's plans on benefits

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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