Finance - Is it a strain?

For all of those people who feel that student life is a breeze and do not think that we actually struggle, think again. My partner has recently been made redundant, as I only work part time (under 16 hours) and a student, we thought we would be entilted to extra help.......I was totally wrong! We applied for help with Council Tax and Housing Benefit, only to learn that we do not qualify. They are taking my student loan as well as the grant as colateral, it obviously does not matter that this loan has got to be paid back with interest added when I am working full time after the course has finished. So in actual fact the money that is supposed to be for travel expenses, equipment and living expenses, actually all of this has got to go towards the rent and bills. What is the point of having help with uni expenses if nothing goes towards it?
Also my partner applied for job seekers allowance - because he was earning and paying NI contributions he gets 'Contribution based JSA', this means that he gets an extra £4 a week and we are not entitled to Free School Meals, clothing costs or extra help with any other aid. If he did not work he would have been entitled to Income - Based JSA, and we would have been entitled to Free School Meals etc. I feel that this is extremely unfair for the working class who by no fault of there own have been made reduntant. Where is the insentive to work?? The Government Stratagy is to eradicate povety by the year 2020. With all of this in place, I can't see it happening, people seem to be penalised for trying to help themselves, which is completely wrong. Everyone should get the same requardless if they had been previously working or not. Does anyone agree that this should be the case or have I totally got it wrong??