The amendment to continue existing arrangements had been successfully moved in the House of Lords by refugee campaigner and Labour peer Lord Dubs, who fled the Nazis as a child on the Kindertransport.
The damning comments come as Priti Patel was ‘bitterly disappointed’ a flight due to take asylum seekers from Britain to Spain was halted.
Therese Coffey's answers were described as lacking in "reason and lacking in compassion".
"Matt Hancock made much of awarding £60k compensation - it turns out low income families awarded the lump sum will therefore be stripped of their benefits".
“It is utterly shameful that bereaved families of NHS and care workers face losing access to benefits if they receive a payment from the Covid-19 compensation scheme."
Priti Patel has attracted criticism after she praised campaigner Paulette Wilson - who died suddenly on Thursday - for highlighting the "terrible injustices faced by the Windrush generation"
Test cricket returned to our screens on Wednesday, but powerful broadcasting about Black Lives Matter made it feel irrelevant
Amendments to the Immigration Bill to protect lone children and call for a time limit to immigration detention were defeated by the government.
Alfred Fagon was a playwright, actor and director and was the first black person to have a statue erected in their honour in Bristol.