Changes to the benefit system coming into effect on April 9 will save the Government around £2.5 billion.

But the price will be paid by families who currently receive Universal Credit.

And think tank the Resolution Foundation says that the people hardest hit will be those on modest incomes - what it calls "just about managing" families.

Labour MPs oppose the cuts.

And some Conservatives are urging Chancellor Philip Hammond to take action to help claimants.

They include Iain Duncan Smith, the former Work and Pensions Secretary.

What's happening?

The four key benefit cuts coming into effect are:

  • Year three of the four-year cash freeze in working age benefits , affecting almost 11 million families. The 3% real terms cut in working age benefits this year is set to be by far the biggest of the four-year benefit freeze.
  • A two child limit for benefit claims , costing up to £2,780 for a family having a third child. This will affect 150,000 families.
  • Withdrawal of the family element of support for new tax credit and universal credit claims from families with children , costing up to £545 and affecting 400,000 families.
  • The rollout of Universal Credit, saving £200m this year due to lower entitlements than the existing benefit system for long term sick and working families in particular.

There's also some good news

More than 1.5 million workers will benefit from a 4.4 per cent pay rise when the National Living Wage rises from £7.50 to £7.83, on 1 April.

What does it mean?

David Finch, Chief Analyst at the Resolution Foundation, said: "The government is doing the right thing on pay with another big rise in the National Living Wage and ending the cap on public sector pay. But for many families the extra pay will be outweighed by the £2.5bn worth of benefit cuts being rolled out.

"With an average loss of £190, low and middle income families are set for the second biggest welfare squeeze since the crisis, at a time when pay growth remains muted and household incomes are already under strain."

What do MPs say?

Preet Gill, Labour MP for Birmingham Edgbaston

Preet Kaur Gill, Labour MP for Birmingham Edgbaston, said: "We have already stated to see with the roll-out of universal credit, especially in Birmingham, a lot of people facing a lot of hardship.

"The staff in my office have needed special training because [people are coming to us with so many problems.

"I disagree with limiting benefits to two children. This should be a means-tested change rather than a blanket one, because it will hit people who are already struggling to make ends meet."

What does the Government say?

Conservatives say Universal Credit is designed to help people into work by ensuring they are better off working than unemployed.

Chancellor Philip Hammond.

Speaking on the Andrew Marr show on Sunday, Chancellor Philip Hammond said it was still important to control spending.

He said: "We have a debt of 1.8 trillion pounds, 86.5% of our GDP. All the international organisations recognise that that is higher than a safe level and this isn’t some ideological issue, Andrew. It’s about making sure that we have the capacity to respond to any future shock to the economy.

"There will be economic cycles in the future. We need to be able to respond to them without taking our debt over a hundred percent of GDP."