The rent supplement of €950 p.m. is very generous in a country that is skint, at €11400 per annum that is a lot of property tax from a lot of houses around you.
The €11400 p.annum is payable only I guess because there is a shortage of council houses or more affordable options, also the landlords have had a barren few years with the tenants in control and exercising their choice due to over supply of rental options. This balance has shifted and they are seeking a legitimate return on their investment and that is where the crux of the problem lies, the rent assistance provided by the taxpayer no longer cuts it in almost all of the larger urban areas such as the one you would like to move to.
I can see no way forward short term unless you could transfer to another larger property at the same supplement and that is unlikely or come to an arrangement to top up the rent from your income when you secure a job and you will secure a job by making looking for a job your full time job until you get that job offer.
Families have been reared in smaller much less modern spaces over the years in this and many other countries, you will survive until things improve I'm sure.
Good luck.