Chancellor Rishi Sunak defended his decision not to increase benefit payments to stem rising living costs in his spring statement last week.
MPs said Mr Sunak could have done more for those on Universal Credit.
The increase in the cost of living is expected to exceed the projected increases in benefits this year.
However, Mr Sunak told MPs he had “announced targeted support to those who need it most”.
Defending his decision before the Finance Committee on Monday, Mr Sunak said tax cuts and support for energy bills were among a series of “progressive” measures that would help low earners the most.
Benefits and state pensions rise 3.1% in April, well below the rising cost of living known as inflation.
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The committee’s chair, Conservative MP Mel Stride, asked the chancellor if his spring statement gave beneficiaries “reason for hope.”
Mr Sunak said “there is a tremendous amount of spending” and “the vast majority of people” who are on welfare will be better off as a result.
When asked by Mr. Stride why he chose not to increase benefits more quickly, Mr. Sunak cited operational issues and his unwillingness to increase government borrowing.
“My job is to make the right long-term decisions,” said Mr. Sunak. “In my view, excessive borrowing is now irresponsible.”
Mr Sunak was also challenged by Labor MP Angela Eagle over benefit payments and a likely fall in living standards.
Analyzes by the think tank Resolution Foundation indicate that from April 1.3 million more people would be pushed into “absolute poverty”.
Meanwhile, the Office for Budget Responsibility (OBR) is forecasting a 2.2% decline in living standards this year — the biggest drop since the 1950s.
“But that goes up to 6% for the poorest,” Ms. Eagle said. “Why haven’t you done more to help those who are really struggling massively with this cost of living situation?
“They made a political decision to push 1.3 million people, including half a million children, into poverty.”
In response, Mr Sunak said government measures would offset about a third of the projected fall in living standards.
He said “global forces” were driving up prices and falling living standards.
According to OBR, rising energy prices could push inflation to a 40-year high of 8.7% in the final three months of 2022.
Mr Sunak said energy prices are “incredibly volatile”, adding: “Therefore we will continue to monitor the situation and stand ready to act if necessary.”
The Chancellor wanted to address the rising cost of living in her spring declaration last Wednesday.
He cut fuel tax by 5p and took some of the sting out of the National Insurance (NI) surge in April by raising the point at which workers must start paying from £9,600 to £12,570 from July.
But he has been urged by opposition MPs to do more now to help people tackle rising food, fuel and energy prices.
His adjustments to NI fell short of demands from Labor and some Tory MPs, who had urged him to scrap promotion entirely in April.
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