Having lived on benefits for a time, and also having been brought up on them, my view is they are enough to live on frugally. They are not enough to have everything. As a child, we had no telephone, no washing machine, a black and white tv (this was in the 70s/80s - most people had colour). But I always was well fed, warm, and had clean, new clothes. I had all the essentials, those were my parent's priorities, and rightly so. If they went without - and they did - I certainly never knew about it at the time.
There needs to be more affordable housing now, that seems to me the root cause of the problem. Councils should never have been allowed to sell off so much of their housing stock without building new homes with the proceeds. A lot of the issues we see now (people having no security of tenure, being forced to move, losing deposits etc) are due to a lack of social housing.
People also need a greater sense of fiscal responsibility, to live well within their means not at the limit of them, to have a tiny cushion of some kind (even if its only a couple of hundred pounds) to cover emergencies, or at least go towards covering them.