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
Redcar MP Anna Turley has criticised a new London-based government post on the SSI site regeneration, calling it ‘sick joke’.
Northumbria Police have thanked members of the local community after a gas explosion in Sunderland.
Teenage schoolchildren who use e-cigarettes dramatically increase their chances of graduating to tobacco, research has shown.