The Chancellor responded to concerns over the roll out of Universal Credit which is currently being introduced in Glasgow.
Concerns that people are losing out when switching to the new benefit and delays in payments have led to people suffering hardship have been raised and calls made for the roll out to be halted.
Phillip Hammond however said Universal Credit was “a long overdue and necessary reform”.
He said that he had recognised two concerns about the benefit.
Mr Hammond announced he was increasing he work allowance element by £1000 which he said would benefit 3.4m people.
He also announced another £1bn over five years for measures to aid the transition from the current system to the Universal Credit system to offer “additional protection for existing claimants” when they move onto Universal Credit.
Mr Hammond however said: “Universal Credit is here to stay and we are putting in the funding to it needs to make it a success.”
The extra cash was welcomed by anti-poverty campaigners but with a warning that austerity will not be ended as long as the benefits freeze is in place.
Peter Kelly, Director of Poverty Alliance, said: “While we welcome the much needed changes to universal credit work allowances, today’s Budget is a missed opportunity for the UK Government to fulfil its promise to end austerity.
“By continuing the damaging freeze on working age and child benefits, this Budget risks pushing even more people into poverty.
“In our society we believe in justice and compassion. And yet If current trends continue, by 2021 one in three children in Scotland will be living in poverty. That simply can’t be acceptable. Freezing these benefits at a time of rising living costs has meant a cut to the incomes of families who can least afford it.”
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