Chancellor George Osborne announced he will uprate some working age state benefits by the planned 5.2%, in line with September's Consumer Prices Index (CPI) inflation figure.

But he also scrapped planned increases in other payments.

Child tax credit had been due to rise by £110 per child on top of the inflation-linked hike of around £125.

While the child element of the child tax credit and the disability elements of tax credits will be uprated in line with the CPI measure of inflation, other elements of the working tax credit will not.

There had been fears the across-the-board rise would be cut to 4.5% which would have led to a combined £1 billion loss for many recipients.

For instance, the basic state pension will rise by £5.30 to £107.45 per week, a 5.2% increase.

The minimum income guarantee for pension credit for the poorest elderly people will rise by £5.35 a week to £142.70 per week for single pensioners, a 3.9% rise.

The same percentage rise will apply to pensioner couples, who will get £217.90 a week. This will be paid for by a reduced savings credit (part of pension credit) payment for many.

Osborne was accused of punishing families for his economic failure today after he announced the changes.

Shadow equalities minister Yvette Cooper said together with other working tax credit changes, an average family with two children would be £320 out of pocket.