Benefits debate: Diane Abbott and Katie Hopkins
10 January 2014 Last updated at 09:10 GMT
The majority of new housing benefit claimants are in work, while more than half of welfare goes on pensions, said Diane Abbott.
She took issue with Katie Hopkins' claims about benefits, fraud and work ethics made in her personal film for BBC1's This Week.
The debate continued in this studio discussion, along with Michael Portillo and Andrew Neil.