Chris - I don't think you are seeing the 'bigger picture'.
Subsidy by the state has to be paid for by productivity elsewhere in the economy. Without the productivity of industry generating income for the UK, we cannot afford to continually subsidise our workforce.
It does not matter whether the subsidy is made through the provision of cheap housing or through benefits payments - it is all money that we don't have if we are not generating wealth for the nation through industry.
I don't quite understand what you mean by "If pay is not sufficient... will promote economic growth, sustainably"
Can you please elaborate on this concept?