The need for food banks was also highlighted by the Bishop of Leeds, the Rt Rev Nick Baines, as he tackled ministers at Westminster.
His intervention came as the Government stepped up its attack on the UN poverty expert behind a critical report of the UK slamming the "inflammatory and overtly political tone".
Works and Pensions Minister Baroness Buscombe told peers during a recent visit to the UN, people had moved to "distance themselves from it" and preferred instead to praise the Government's "groundbreaking, exemplary and world-leading policies in the area of work and pensions".
In his report, UN Special Rapporteur on extreme poverty and human rights Philip Alston claimed the UK had violated its human rights obligations through sustained and widespread cuts to social support.
He also said that although the UK is the world's fifth largest economy, one-fifth of its population (14 million people) live in poverty, and 1.5 million experienced destitution in 2017.
The Department for Work and Pensions has already branded the report a "barely believable documentation of Britain" and said it painted a "completely inaccurate picture" of its approach to tackling poverty.
But pressed on the findings in the Lords, Lady Buscombe appeared to go further, telling peers: "Nobody wants to see poverty rising and we treat the issues raised by the special rapporteur seriously.
"However, we seriously regret the inflammatory and overtly political tone of his report and strongly refute the suggestion that we have failed to listen to stakeholders."
She later added: "When I broached the subject of this report... at the UN last week, it was clear that everyone who knew about it was keen to distance themselves from it, preferring to compliment this government on, 'Groundbreaking, exemplary and world-leading policies in the area of work and pensions'."
Responding to this, the Bishop of Leeds said: "If the success is so great, why are so many schools in my diocese having to feed children, and why does almost every parish contribute to food banks?"
Lady Buscombe said: "We have done an enormous amount to tackle poverty since we came into government.
"We have invested huge sums of additional money into developing a welfare system that encourages people into work and supports them in work... because we know that the best way to get out of poverty and save children from it is to work."
Pressed by former Commons speaker Baroness Boothroyd to answer the bishop's "direct and interesting question", the minister said she had.
Lady Buscombe told peers: "We have taken the questions and statements of the rapporteur very seriously.
"We do not accept, in the words of people at the United Nations last week, the political scaremongering, the hyperbole, the inflammatory and scaremongering approach to the whole subject.
"It is not helpful from someone who was not keen to engage with our officials."
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