He was speaking after Chancellor Kwasi Kwarteng declined to say whether benefits would increase in line with inflation, despite a commitment from his predecessor Rishi Sunak.
Mr Eastwood said the government should be introducing protections for the worst off in society.
Said the Foyle MP: “On Saturday we saw people power in action at the Derry Against Fuel Poverty march brought people to the streets against the Tory right-wing agenda.
“As our community fights for support the British government is abandoning another commitment to help those who need it most.
“Soaring inflation has meant that people’s wages are worth a fraction of what they once were, the cost of everything from food to fuel is increasing and people don’t have the money to pay for it.
“Those who rely on welfare were struggling long before this crisis and the government’s refusal to increase payments in line with inflation will be a crushing blow to thousands of people in our city and across the North.
“As a result of this heartless decision people will be forced to skip meals, live in cold houses and cut out the few luxuries they can afford.
“Everyone, from pensioners to children will suffer.
“The relative child poverty rate in Derry for 20/21 was 22.9%, 4.2% higher than the UK average, with 16.1% of children in Derry living in absolute poverty.
“These figures are disgraceful, but are likely much worse with families facing unbelievable pressures due to the cost of living emergency.
“Now is the time for positive interventions to get people through the difficult time ahead.
“Instead of rewarding the well-off and hurting the vulnerable, the Tories should be introducing policies that will make a real difference to people’s lives.
“I have written to the Chancellor outlining a number of proposals including increasing welfare payments in line with inflation, pausing social security debt collection, ending the two-child limit on Universal Credit and Child Tax Credits and reinstating the £20 weekly cut that has left so many families in our city worse off.”
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