They can't be that broke, there's 4 working adults in the flat. They'll get child benefit for the 3 kids, which will be about £50 a week.
Kyle said he'd move out and it would be one less mouth to feed, but surely he'd be contributing so covering the cost of his food and chipping into the bills. The space would still be an issue if he stayed obviousl,but I don't see how they'd be better off financially if he left.
EE portrayal of money issues has always been awful. It's always been pointed out how they go to the he pub and cafe when broke, but I'd have thought the writers would have cottoned on to that and at least have given Stacey and Kyle other reasons to bump into each other rather than a blatantly wasteful tea run right after a scene where they were stressing about money.