I wonder if they will actually go through with this libel action because given the amount of media work and other funding sources (e.g. Patreon) they are either going to be shown as earning a decent amount by the standards of those they claim to be helping or they are actually nowhere near as influential as they make themselves out to be.
From what little I know of them, they do seem to play the "I did the poverty thing" card quite a lot. Which frankly suggests they aren't poor anymore. People genuinely on the poverty line tend not to have time to do what they are doing.
I'd expect them to be hoping that the nasty Tory won't actually call their bluff on this one.
As for the Tory MP, just because he's a Tory and even worse, male, doesn't make him automatically wrong. Budgeting and cooking courses, being as they aren't on the national curriculum, are a VERY good idea.
From life and work experience (single parent family/council estate/worked in both benefits and debt) some people are skint because they are truly, genuinely bloody awful with money as the MP in question probably saw quite a bit when at the CAB.
You can increase benefits by however much you want other people to pay for them but some people will not be helped unless they change their spending habits and decision making. Quite a few friends of mine if you gave them a £2,000 cost of living help cheque would have the lot spent in minutes on whatever caught their eye. Net effect? Absolute zero.