I dont see a problem with housing benifit John as with your child you would be able to seek two bed accomadation
On council tax you would proberbly have to find the £20 a month average difference between a single occupant and multipul as you get a 25% discount for being single in a property of course as your income rises those benifits decrease with a child you might find tax credits more usefull you can find out on line what your entitlement is on there website here
http://taxcredits.hmrc.gov.uk/HomeNew.aspx