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Lost my Job just before Christmas 2011

Having been handed my notice of termination on the 23rd of December 2011, I now find myself in a difficult situation. With 2 children under the age of 2 and more bills than I'd like, things are looking bleak at present.
I am actively seeking new employment and am getting help from my Union to have me reinstated due to an unfair dismissal due to an injury caused at work. I've been told I've got a strong case either for unfair dismissal or Industrial Injury. how long could that take though!
What worries me is the benefits I've looked into might not cover my bills in the meantime. I'm not the type of person that sponges and I have always taken pride to earn my money. I bought a new car back in April 2011 and I don't really want to lose it. Plus the injury is forcing me to think drastically about alternative employment I would be capable of doing without further injury to myself.
I have a credit card and a bank loan that need paying off too, luckily I had payment protection taken out for both. Now here is my BUT! If I activate the PPI for them would that affect future credit scores or borrowing? My bank said I'd have to wait a whole month before they would be activated.

Any help or advice would be received with much appreciation.

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