Ok so the current independent estimate of a living wage (based on a 40 hour week is) £298 per week before tax and NI (
http://www.livingwage.org.uk/)
As for alternatives, how about in this time of austerity:
Reducing/closing corporation tax loopholes
Not cutting top rate tax (for now - longer term replace the current tax system with a proper flat rate system)
Not offering incentives to property speculators through the appallingly drafted "house buyers assistance scheme" (even Osborne admits it is unlikely to achieve its aims and will be open to abuse)
Not selling off the NHS to your friends in the corporate sector (all privatisation schemes have ended up delivering more expensive services - but of course it is the punter who pays so that is ok)
Capping private sector rents for "social tenants" to reduce the amount of housing benefit paid out
It is worth reminding people that the majority of the benefits bill (excluding state pensions) is actually paid to people in work through the form of working tax credits, housing benefit, child allowances, council tax benefit etc.
No one denies that there is the need for some form of reform of the benefits system, but it is not the "pig trough of plenty" that the tabloid press paint it as. We do need to consider caps on total benefits paid to any individual, limits on eligibility periods for things like JSA & ESA, but these need to be exercised with care to ensure we do not drive more people into poverty. At the same time we need to encourage job creation through entrepreneurship etc.