Why shouldn't everyone have to make a degree of contribution to services that they use ?
Why should there be exceptions? People who have a relatively small degree of savings are getting hit more and more and are having to make cutbacks, and not just to luxuries such as netflix.
So you agree there is a housing component and rent doesn't necessarily come out of 'other living expenses'
You've massaged the 5% figure. the actual stats are
In real terms (adjusted for inflation), growth in total and regular pay fell on the year in April to June 2022 at 2.5% for total pay and 3.0% for regular pay; this was a record fall for regular pay. Average total pay growth for the private sector was 5.9% in April to June 2022, and 1.8% for the public sector.16 Aug 2022
I'm not arguing that some of the methods involved have had catastrophic impact to individuals, however, the examples you give are of edge cases . This of course by no means lessens the impact felt.
I also via SWMBO see people who are sanctioned, why? because they refuse to travel outside of a three mile area for work, because they refuse to work shifts (not that they have compelling reasons such as childcare, simply because they don't want to work shifts) people who refuse to work because they don't want to work weekends . For every example you give of those who really do need our support, there are an equivalent number of people who are quite simply abusing the system because they can't be bothered. there are those also who are desperate to work including people in 'Group 1'
People who cannot work should get every single piece of help available, but still make a contribution to the services if they consume, even if it's 50p
TL
R the whole system is screwed, it's needs rebuilding from the ground up