Chancellor George Osborne has surprised critics by doing a U-turn on tax credit cuts and vowing to protect police budgets in his Spending Review.
Millions of low pay households will not now consider their benefits cut in April, although the relief for many will be temporary because taxation credits will be phased out by 2018.
The new Universal Credit that will replace them is set to be less generous, critics say.
Mr Osborne also pushed ahead with 12 bn cuts to the welfare budget, with a fresh squeeze on housing benefit – and 20 bn in departmental cuts.
Follow live coverage of the Spending Review reaction Key phases of Spending Review and Autumn Statement Robert Peston: George Osborne’s 23 bn magic trick Analysis: Will spectacular U-turn damage George Osborne ? Public finances 27 bn better than they were in July What the measures announced mean for your finances Read the Treasury background documents Media captionThe moment John McDonnell pulled out Mao’s “Little Red Book” Media caption‘He still plans to cut 42 bn a year’ Plans to hand billions to private developers to build 400,000 new homes in England A real terms increase for education money – including early years and further and higher education, and big regional differences in per pupil funding removed Buy-to-let landlords and people buying second homes will have to pay more in stamp duty A levy on companies to fund apprenticeships is being set at 0.5% of an employer’s pay bill Basic country pension to rise by 3.35 next year to 119.30 a week Tax free childcare for families earning more than 100,000 to be scrapped Money for new road and rail projects, including the electrification of TransPennine, Midland Mainline and Great Western Holloway women’s prison in London, is to close as part of a plan to modernise Britain’s incarcerates Housing benefit for new social tenants to be capped at same level as private sector organizations NHS to deliver 22 bn efficiency savings in England and Department of Health to cut 25% from its Whitehall budget Proposals to raise 5bn in a fresh crackdown on tax avoidance Using 15 m a year from VAT on sanitary products to fund women’s health charities Media captionBBC editors on the Spending Review Media captionLib Dems and UKIP on Spending Review Media captionGreen Party and Plaid Cymru on Spending Review