My personal experience of benefits is far from the lavish utopia described in this thread.
My wife and I had our first son, so she took maternity leave to look after him. As a teacher, her maternity leave was extremely poor and quickly diminished to the statutory levels.
No problem, as we'd planned for this and saved money to cover this period. I was a full time student, so had a small income based on loans and bursaries. However, I badly injured my back and needed spinal surgery, rendering me legitimately disabled, both physically and cognitively (the medicine I was taking obliterated my short term memory). As I stopped university mid year, I had to pay some student money back and was cut off half way through the year with no income.
Trapped in a limbo where I was entitled to neither student financial support nor any kind of disability allowance, we turned to universal credit.
After several face to face meetings and many telephone conversations we were entitled to the princely sum of £135 a month. What was particularly gaulling was the level of documentation we needed to supply. Bank accounts, pay slips, mortgage information, student letters proving that we had no money and legitimately needed assistance - only until my wife's maternity leave finished!!
It must have cost them more to administer the claim than the paltry amount of money they paid out - how the hell did they even calculate that the income made sense, when that our total income, including universal credit, was lower than our (small) mortgage!
So in summary, I'm not surprised that so many people are trapped in poverty. Unable to save meaningful amounts due to high living costs and low wages, falling through the cracks when disaster befalls them.
Of course, there are those who game the system but I suspect that they are in the minority. What is the solution? I'm not sure but there are a lot of hard working people who barely get by.