I think a better way is simular to what is done in several places in the States. The State pays the landlord directly. Any additional rent would come from tenant (welfare user). Food is by food stamps. The amount of cash doled out is next to 0. No abuses or people taking their cheque and spending it on crack or weed.
well, they can sell their food stamps. No matter how fool proof you think you can make it, someone will discover a way to scam it.
that's what I meant by micromanaging. You'd have to have an army of people available to micromanage every single aspect. It would be impossible. Also, if children growing up on welfare never see their parents manage their money, how are the children going to learn? In the end it's the children who will loose out at every turn, every twist, and every attempt to stop the abuse that isn't as prevalent as those not on welfare seem to believe.
From Utah in the states (just one article of hundreds on the net)
The Myth of Welfare and Drug Use - The Daily Beast