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Live: PM's questions from noon, followed by a statement on troops in Afghanistan
Ed Miliband has attacked the government's record on poverty, claiming "working people are turning to food banks".
In animated exchanges with David Cameron, the Labour leader said the situation was "getting worse".
But the prime minister said tax changes under the coalition were helping the worst-paid in society.
Separately, he announced veterans of the Arctic Convoys in the Second World War would be awarded medals.
There will also be a clasp for veterans of Bomber Command, he said.
The two leaders also discussed the expected return next year of 4,000 UK troops from Afghanistan next year.
The session will last until 12:30 GMT. It is the last Prime Minister's Questions of the year.
Afterwards, Defence Secretary Philip Hammond is expected to announce the plans to bring troops back from Afghanistan's Helmand province.
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