A Tory MP was branded "callous" for suggesting poverty-hit people are "sitting on benefits" and should "get any job", as Britain braces for the biggest fall in living standards since the 1950s.
Katherine Fletcher was accused of an "insult" on struggling families after Rishi Sunak's mini-Budget last week failed to offer the poorest help for the looming cost-of-living crisis despite soaring energy bills and food prices.
The Chancellor refused to reinstate the £20 uplift to Universal Credit and, despite inflation set to average 8% this year, uprated benefits by a measly 3%, meaning low-income families will in fact be hit hardest.
The Resolution Foundation, an independent think tank, calculated a staggering 1.3m people, including 500,000 children, will be left facing absolute poverty this year as a result.
But South Ribble MP Ms Fletcher sought to duck responsibility for the government's decisions when she appeared on BBC Politics North West.
She attacked the Foundation, whose executive chairman is former Tory MP David Willetts, for not being "fair or "neutral", before outrageously suggesting people were "sitting on benefits".
"We've got the same number of people unemployed at the moment as we've got same number of job vacancies," she said. "The best way to help anyone out of relative or absolute poverty is to help them get a job."
Told that even people in work were facing levels of poverty not seen in decades, Ms Fletcher replied "no, no", and went on: "You get any job, you get a better job, you get a career."
She said the government was backing a "plan for jobs", before adding: "I went to see the job centre at Leyland the other day. They've got more vacancies than we've got job seekers. So there's huge effort to put that in. People sitting on benefits - that's not helping them."
Labour's Shadow Employment Minister Alison McGovern said Mr Sunak has failed to support the worst-hit families, adding: “For a Tory MP to suggest people are sitting around on benefits shows we’re being governed by the same old Tories.
"While working families are striving to make ends meet in the face of callous Conservative decisions that are making their lives harder, we have a Tory MP doing nothing more than insult them.
"This tired Tory Government is out of touch, out of ideas, and hopefully soon out of office."
The Resolution Foundation found that a typical working-age household will see their real income fall 4% next year - a loss of £1,100, the Resolution Foundation think tank said.
Absolute poverty - rather than relative poverty - is crucial because it is the measure Boris Johnson chooses to use.
The Foundation warned the Tory Chancellor's £11bn in cuts to National Insurance and fuel duty will also mostly benefit people in work.
Even with a 1p cut in income tax from 2024, seven out of eight workers will still be paying more tax overall by 2025, the experts' analysis found.
“The scale and distribution of the cost of living squeeze, coupled with the lack of support for low-income families, means that a further 1.3 million people are set to fall into absolute poverty next year, including 500,000 children – the first time Britain has seen such a rise outside of recessions," the think tank said.
It came as Mr Sunak was branded “Mr Tax” by shadow work and pensions secretary Jonathan Ashworth, as the Labour frontbencher warned pensioners have been “cutting back on hot meals” and “forgoing hot showers” as they cannot afford the cost.
The Chancellor is reported to be considering proposals for a second council tax rebate to help ease the impact of soaring fuel bills, according to the Sunday Times, as even backbench Tories are piling the pressure on Mr Sunak to act.
His package of support, which was announced before the mini-Budget, includes a £200 up-front rebate on energy bills from October, which will be clawed back next year, plus a £150 council tax rebate for homes in bands A to D from next month.
Mr Ashworth told Sophy Ridge On Sunday on Sky News: “ Rishi Sunak absolutely had more room for manoeuvre in this spring statement and mini budget, but rather than acting in the interests of the British people, he was playing games.
“He was acting in his own interest because he thinks by offering an income tax cut in two years that’ll help him politically with Conservative MPs if there’s a leadership contest or that’ll fit the Tory election grid.
“I don’t believe that putting 1.3 million people into poverty because you’re imposing a very severe real-terms cut to Universal Credit, you’re imposing the biggest cut to the pension in 50 years, is fair.”
Mr Ashworth said Mr Sunak should have imposed a “windfall tax” on the profits of oil and gas companies to generate funds to help struggling families and pensioners with energy bills.
He said: “He chose not to do that.
“Instead, he’s imposed these very punishing tax rises, these very severe real-terms cuts to the pension and support like universal credit, and he’s expecting people to be grateful because two years down the road he’s saying there’s going to be an income tax cut even though that income tax cut nowhere near offsets the 15 tax rises that he has imposed on the British people, £3,000 extra per household if you do a rough and ready calculation.
“He is a tax-rising Chancellor, he is Mr Tax and it’s the British people who are paying the price.”
Education Secretary Nadhim Zahawi hinted more help was on the way, when he said it would be irresponsible to say “job done” by Mr Sunak over the cost-of-living crisis.
He told the same programme: “I think he will continue to keep an eye on this, it’s only right.
“It’s irresponsible for me to say ‘job done’ because energy prices are volatile, inflation remains high, so it would be absolutely irresponsible to say ‘job done’."