Deputy Prime Minister Nick Clegg has defended the coalition government's analysis of the Budget.
Mr Clegg said a report by the Institute of Fiscal Studies (IFS), which said the Budget has hit poorest families the hardest, was "by definition partial".
BBC News website readers have been sharing their thoughts:
Donna Mwanja, West Sussex
I feel the system does not support people who are trying to do better.
There is no difference between people sitting at home doing nothing and taking their benefits, and those like my family who are trying to help themselves.
In June my husband got a bonus in his wages. It was a one-off bonus due to a good group performance.
But our housing benefit was slashed and they stopped our council tax benefit.
Now in August, and despite taking in much lower wage slips since, we are yet to have our benefits back to how they were before the bonus.
I'm so frustrated with it. It's an impossible situation.
The whole system is a shambles and does not support those who need it, when they need it.
Scott Oldham, Northampton
Finally a budget that benefits me.
As a single professional middle-class male, I have been waiting 10 years for a budget that doesn't penalise me.
I've never been in debt, I'm a saver. My attitude is that people should take care of themselves.
My family is staunch Labour and did rely on state welfare when I was growing up, but I now take completely the opposite view - I don't use welfare, social services or tax credits.
I'll probably only feel the effects of this budget next year, but I can see that the policies are geared towards cutting benefits.
That's not to say that I think the poorest families shouldn't be supported - I just think that things like working tax credits should be better means-tested.
I think that this government is taking the long view about our economy. There will be short-term pain, but there is no money in the pot - we have to take the long view.
I have four children under the age of six and I am on a low income. With the cuts to tax credits I would find it a lot harder to keep our heads above water. I agree that it will make the rich richer and the poor poorer.
Mark Blackwood, Brighton
I count myself as one of the poorest people as I have not earned any income in the past 18 months, nor am I claiming any benefits. I am fortunate in that I have friends who will feed and house me as is necessary. If there were more "friends" around like mine then our government income support costs would not be so high. We must learn again to look after each other as required and not rely on the state (and thus the tax payer) to do it for us.
I feel very let down by this government. It means the people who cannot find jobs due to redundancies will suffer the most. We are the ones who are trying to find jobs. It is a major struggle to keep me and my two-year-old daughter going and all these cuts mean it is going to be even more of a problem. I would like to see the MPs live in our shoes for a year. With every CV you put to agencies and companies, they say there are two roles available and 290 people applied for the job. How can they decide to cut benefits when people need them most now?
I have to maintain my family on one income. The budget will affect me in a very bad way especially next year, with all the increases. In the long run I may lose my family home, given that I will not get a pay increase for two years.
Wilbur Nazareth, Croydon
I personally think the government is doing a great job. We owe money, so we have to cut spending. Of course benefit-claiming households will be most affected - their income is the government. And too right that it affects working age professionals without kids the least. We don't claim anything from the government. Our income comes from working and we fund schools etc through our taxes, so it is only fair that it affects us less. The only reason we are in this mess is because the previous government nannied everyone and made life too cushy for people who don't contribute.
My tax credits have already been hugely cut by the coalition. I have lost over £200 per month. I am a single mum, working my socks off with an ex-husband who gets away with providing £600 per month for his son whilst earning a six-figure salary. Things are now a huge struggle and I find these cuts devastating. To think tax credits may be cut further is very worrying. I am hardly sitting on my backside sponging off the state.
Looking at this report does make me feel uneasy. As usual it is time to "benefit bash" and although there are some people who are on benefits just because they are lazy, there are others who are on benefits through no fault of their own. I am in receipt of income support but this has been through illness. I am looking to get off all the benefits that I am currently on by going to university and trying to improve my employability. Those who want to work should be given the opportunity to improve themselves. Those who want to laze around should be given penalties or incentives to get them back into the workplace.
Raymond Jarrett, Bolton