Hi rickman,
have you looked into swaps? you don't usually have to have been on the list two years to arrange a mutual exchange.
Also, some private landlords will take HB if you can provide a guarantor. Do you know anybody with a reasonable working income that would stand for you? Parents? You really have to lie to your back teeth, tell them it is temporary, you are going back to work soon, whatever - they forget about it as soon as they ahve their rent coming in.
It is hell being a single mum, I was one for a couple of years. There are times when it all is so infuriating when they can carry on regardless, while you have to deal with the shit. It won't last forever tho, so try to focus on the positives. You know you are happier without XP. You are doing really well, and I agre with VVQ, you need a goal to focus on.