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
A look ahead at the forecast for the Tyne Tees region.
An acclaimed head teacher has appeared in court accused of sexual offences against a young boy.
Police in County Durham are looking for the last person to see a teenager alive.