Benefits for those out of work or in low-paid jobs will only rise by 1% this year - which is less than the rise in food prices and energy bills, and means that the money will not go as far.
Tonight, MPs are voting on whether to extend the squeeze for the next two years.
This measure would save the country three billion pounds, but it would mean millions of families would be worse off.
You can see the full report from Lucy Taylor below.
More top news
Heavy rain expected, also some snow in the forecast
Often very windy, especially as we head into Sunday, with rain or showers. Met Office 'Be Aware' warnings have been issued
Here is our essential guide to all things Christmas in the North East.