Boris Johnson has claimed that the Government raised Universal Credit by £1,000 - when the Tories have slashed the benefit by the same amount.
The Prime Minister was urged to help families struggling with the mounting cost of living crisis by Labour MP Sarah Champion, who demanded: "How do you sleep at night?"
Mr Johnson sought to defend his record during the feisty PMQs clash by saying the Government had "lifted" Universal Credit by £1,000.
But he failed to mention that the Tories axed the £20 weekly uplift brought in during the pandemic, which amounts to a £1,040-a-year cut for struggling Brits.
Labour accused him of "yet again making it up".
Downing Street suggested he may have been referring to changes to the Universal Credit taper rate.
In December, the taper rate - the amount of benefits withdrawn from every £1 someone earns from work - was reduced from 63p to 55p.
The Government has described this as a tax cut but it only applies to claimants in work, not those who are long term sick, disabled or unemployed.
Ms Champion said her constituents were struggling to put food on the table, fuel their cars and keep their lights on.
"This is the biggest financial squeeze since the 1950s," she said.
"Prime Minister don't blame Ukraine, don't blame Covid. This is down to your Government's policies and your political choices. How do you sleep at night?"
Mr Johnson admitted “people are facing a very tough time at the moment”.
He added: "The causes are certainly to do with the inflationary impact of the world coming out of Covid and the energy price spike is at the root of it.
"And what we are doing is to help people with Universal Credit which we’ve lifted by £1,000, helped people with the living wage, which is going up now by a record amount, and cutting taxes on working people in the way that we are."
The PM's official spokesman suggested he may have been talking about the taper rate.
Asked if the PM had been misleading, his Press Secretary said she would look at his exact words.
Shadow Employment Minister Alison McGovern told the Mirror: " Boris Johnson yet again making it up.
"Perhaps he hasn't seen the growing queues at food banks or heard families explaining how they are struggling.
"He will never give the British people the respect and security they deserve."