so hypothetically, a person downsizes to smaller property, that 1 bed will cost in rent say 200 a week, but the property that person currently occupies is half that in rent, so in effect it won't save any money for the government, taxpayer, but in fact double the bill, that is if the person gets housing benefit. If you don't mind or have to move out of the borough, town, city, if there are no or few smaller properties to rent in your local area, or indeed in the city, so that means that the person has to upsticks from their home of x years, from their community, provided they have one, and any kind of support, and literally start again. If the person has no family elsewhere then you have a difficult situation, because that person is then somewhat isolated, after all it takes time to establish new contacts, as you have left the old ones behind, and new support, be it doctor, dentists and all that, including any longer term support if you have a disability, mental or physical or both, see how this works...
i have seen how this hasn't worked for others, downsizing only works if there are decent enough properties to move to, those who perhaps have owned their own homes and can afford to downsize, thus free up space and money too from the sale of their property to somewhere smaller.
I have no further answers or comments, we all have our opinions,