So in fact the people you were talking about DID make a choice and chose something larger than needed in the public sector, they weren't put there at all, they put themselves there to be completely correct, even if that sounds rather unemotional and unkind, it's not meant to be. Yes I chose the smallest place, I did it because if I'd chosen anything bigger, I had already been told what HB would cover and didn't want to have to pay a proportion out of IS, this was a few years back, so it's nothing new to HB only now will not fully cover housing. The local housing officer even came around to check I really was renting a small place and the rent was a fair one, she told me if she'd deemed it too high, I would only get a proportion paid. With such a small amount of IS, I couldn't take chances.
The UK is overpopulated, budgets are being cut everywhere, those in public sector work, those in private sector work and those on benefits in work and not. I know from personal experience with someone close to me whose just been forced to take 30% pay cut and works alongside colleagues earning thousands more doing the same job, stupid bugger signed up for annualized hours and has now been stung, that's working for a large government department and now earning less in £s than 10 years ago, it's crazy, but has a job and is told to shut up and put up. Life stinks, life goes on.