You misunderstand the meaning of the words council house
A council house was not a subsidised house attached to the job they were rented accommodation provided by the local authority. In our area it did not matter where you worked, for the council, for the steelworks, or in the grocery shop you paid the same rent to the council, so that is your first argument out of the window.
In 1965 there were three cars in our street, but public transport was affordable.
The state pension was enough to live on, it was only in the seventies that people on basic state pension qualified for benefits, working people were able to build up a superannuated pension as well. Now a state pension is less than half the minimum wage, if someone was working 40 hours a week for £8000 a year it would be less than £4 per hour.
There was more chance of improvement. I was the second in my direct line to go to grammar school and the first to go to University. Then at university you did not have a loan, you had a grant and tuition provided free.
As I said then, no food banks. Even on benefits you could live. If you were working even with higher taxes, which I enumerated you could put a roof over your head and food on the table. At that time most households had only one breadwinner.
Between 1970 and 2022, taxation income has remained relatively constant at 23-24% of GDP, growth in GDP in pounds sterling has been for the most part less than 5% per year, average annual inflation has been 5.75% between 1970 and now, in 1970 there were 2.4 dollars to the pound, in 1990 it was 1.68, now it is less than 1.2, therefore in real terms over the last 50 years the value of the pound has halved, thus our GDP as a result of rising inflation and the falling pound is less than it was 50 years ago. That is largely because of the destruction of our manufacturing base by St Margaret and her disciples. It also means that the taxation income to the government is less when it costs more to provide services such as defence and health services due to the cost of modern systems
As to your argument about obesity, that is spurious. Then there were no ready meals and only fish and chips as fast food outlets. Most food was cooked at home from fresh ingredients. Sweets were in the sixties (certainly the early part) still considered a luxury as they had just come off rationing when I was born in 1957. The main cause of obesity now is cheap fast food and it is more prevalent in poorer areas. It is a sign of poverty, not plenty.
I am sure people could write whole books on the subject of how much worse off we are under the free market economy.