Have you read my posts?
If you don't sort something they will go to court, you and 100 other cases will be looked at and they will get permission from the courts to send bailiffs round, who you will have to deal with from then on.
If you let it get to court turn up on the day with your family and plead your case, you will be discouraged by the council but go.
In the mean time do what i mentioned above and if you don't get an answer ask to appeal.
In regards to benefits chase up the job centre and your council, do you rent your home? do you have any savings?