Nine million households will be an average of £500 worse off next year as benefits rise by less than inflation, shock analysis reveals.
The Joseph Rowntree Foundation says the decision to raise welfare payments by 3.1% - when inflation is forecast to hit 7% - could pull 400,000 more people into poverty.
The Universal Credit standard allowance will rise by £10.07 a month on April 11 to £334.91 for over-25s.