This is a real life situation, happening as I type.
Someone I know has suffered a breakdown after struggling to raise their child alone (absolutely no fault of their own), keep a job, put food on the table and pay the bills. The consequence is no job, time in hospital, and they have now lost their home, and the child is with the previously absent parent. This person is not drug or alcohol dependant. This person has however found themselves dangling over the edge. The benefit system was no help to this person as they were working, paying a mortgage etc. There really is only so much help you can get in this situation. The CAB were as helpful as they could be, but the hole kept getting deeper and deeper.
Thankfully, a place in a hostel has been found for this person. It could have been much worse.
Before anyone asks, I have offered for them to stay with me, but I'm out of town these days which would take this person away from potential employment opportunities, and their health professionals who are still caring for said person (there really isn't any work where I am at the moment). My door remains open to them though.
I'm not going to go into any details about the situation as it's a real person, and is an on going problem at the moment, but there really are people for whom the often perceived luxurious benefits system doesn't work.
Sorry if my post seems a little jolty. I have one eye on the screen, and the other on a ten month old