Jeremy Hunt has announced that benefits and the State Pension are set to rise in line with inflation.
The Chancellor of the Exchequer confirmed to MPs in the House of Commons during his Autumn Statement that both payment will increase by 10.1 per cent - the level of inflation in September.
It comes after weeks of uncertainty around the payments with SNP and Labour MPs demanding they rise with inflation.
A rise in the New State Pensions means it will rise by £18.70 per week, from £185.15 to £203.85, while those over 25 claiming Universal Credit will see their payments increase from £335 to £369 per month.
The 10.1 per cent rise will satisfy many in the Tory party, however the rise is already out-of-date after the Office for National Statistics announced that inflation was 11.1 per cent in October.
Hunt also announced that he wanted more people to become financially independent.
He told MPs: "Today I also commit to uprate such benefits by inflation with an increase of 10.1%, that is an expensive commitment costing £11 billion. But it means 10 million working-age families will see a much-needed increase next year.
"On average, a family on universal credit will benefit next year by around £600. And to increase the number of households who can benefit from this decision I will also increase the benefit cap with inflation next year."
He added: "To support the poorest pensioners, I have decided to increase the pension credit by 10.1% which is worth up to £1,470 for a couple and £960 for a single pensioner in our most vulnerable households.
"But the cost-of-living crisis is harming all pensioners so because we have taken difficult decisions elsewhere in this statement, I can today announce that we will fulfil our pledge to the country to protect the pensions triple-lock."
The 2019 Tory manifesto promised to raise pensions by the triple lock - the highest of earnings (5.5 per cent), inflation (10.1 per cent), or 2.5 per cent.
Phoenix, a mother-of-four, relies on universal credit to provide for her children, who are between four and 15. She told PA: "I think it's too late," the 33-year-old, who did not wish to give her surname.
"None of the people have hope. We are like the actual walking dead... so many people (are) saying the same thing. The struggle is real but should we really be in this turmoil?"
Phoenix said she does not expect the announcement to make a real impact and her expectations of significant help from the Government are low.
She added: All the important things we need to survive are slowly being taken away," she said. As far as I'm concerned, we aren't living. I don't expect anything from these politicians as it's because of all their decisions so far we are in this mess.
"An increase to the benefits will just about cover the cost of the rise, so really and truly it's not worth it... we have families working double jobs who are still not able to provide."
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