We need generous benefits here due to the higher cost of living, the trouble arises from economic tourism.. a bloke I know from Lithuania was telling me that working over there he can only earn 300 Euro's a month, he can make more than that over here on unemployment benefits or do the same work here and earn 4-5 times more.
If I could go to Lithuania and earn for example £5k per month I'd too be on the next flight with a group of friends to house share, with a view to working for a few years and then coming back to the UK effectively set up for life. So next time someone bangs the "Eastern Europeans are more hard working than British people" drum, just imagine how much more enthusiastic you would be at work if you were suddenly getting paid 4-5 times more, plus knowing that you can probably retire back in your homeland after 4-5yrs.
You can earn more in benefits if you emigrated to many other EU counties, the UK's benefits system is extremely stingy. Why haven't you moved to France, Germany, Austria, Netherlands, Finland?