I don't know anyone who is solely reliant on benefits who "manages well", hickorychicken. Everyone I know/knew in this situation suffered from extreme anxiety, stress, depression, learning difficulties, low self-esteem - you name it, including the suffering my mother went through when she was raising two children on her own. It's a trap.
Eventually she found a part-time job as a retail assistant which paid less than the benefits did, but at least she had some measure of confidence and self-worth back, even if she still had to deal with the stress of making ends meet. If she tried to find a job in this economic climate, I think she would have found it a lot tougher.