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.
Consumer groups, including MoneySavingExpert.com, have called on the Government and energy suppliers to finally take decisive action to curb the soaring cost of gas and electricity.
David Cameron has acknowledged that the latest unemployment figures are "very disappointing" after more than 100,000 people joined the ranks of those looking for a job.
Confidence in the UK's financial sector was dealt a blow today after an agency slashed the credit ratings of some of Britain's biggest financial institutions to reflect reduced Government support.