George Osborne announced a real-term cut to benefits as he delivered his Autumn Statement to the Commons on Wednesday afternoon, despite warnings it will push more families into poverty.
"Those with the most should contribute the most, and they will," he told MPs. "But fairness is also about being fair to the person who leaves home every morning to go out to work and sees their neighbour still asleep, living a life on benefits."
"As well as a tax system where the richest pay their fair share, we have to have a welfare system that is fair to the working people who pay for it.
Osborne said that most working age benefits including Job Seekers Allowance, Employment and Support Allowance and Income Support, Child Tax Credit and the Working Tax Credits would rise below inflation at 1%.