Yes it does.
however, a minority of benefit claimants are willing to add a negative value to the disadvantages of being employed - reduced free time, commuting, being "bossed" about, being a "cog in the wheel" etc.
For those, sacrificing £10/£20 per week difference from a min wage job is worth it to not have to put up with those negatives. Monetarily they'll be worse off on benefits but without the disadvantages of being employed - and tbh I can see where they are coming from.
What needs to happen is that min wage employment needs to significantly exceed the monetary value of benefits OR the disadvantages of min wage employment reduced - i.e. subsidised child care, subsidised travel. more meaningful and worthwhile work for those on min wage. Better traing in min wage jobs. better career progression etc.
Only by elevating min wage jobs in prestige and satisfaction will you break the cycle of benefit dependancy. Enlarging the gap between min wage jobs and benefits by depressing or removing benefits is not the answer.