Orobas raises some good points, with which I generally agree. I won't claim to have the solution to the welfare and benefits issue, but think any workable solution would have at least the following characteristics:
1. It provides a playing field that is as level as possible for everyone, so people's lot in life really is based upon their own efforts and ambitions.
2. Related to (1), it avoids penalizing children for the laziness, wastefulness, poor decisions, etc. of their parents by providing them at least with a reasonable start in life. As adults, they can take it from there.
3. People whose "only" crime is laziness or ignorance or just bad judgment are treated at least as well as those who have landed in prison for committing direct crimes against others. At least they have food, a roof over their head, and rudimentary medical care.