I have always thought of the welfare system in a different light. I have always been against welfare. Instead, I would propose the following.
An apartment complex/outreach facility for the poor and homeless. Rather than give out money for nothing, give people in need the means to better themselves.
1. A place to stay if needed. This would be a simple apartment for singles and families. It would also come with rules. First, no drugs or alcohol. Second, your apartment must be kept within standards. Third, you can only stay for a certain amount of time. If you do not get a job within a specified time frame, you are out. If the rules are broken, you're out.
2. A rehabilitation clinic for those who need help with addiction in order to better their lives.
3. A free kitchen. Simple nourishment which will be provided three times a day for those who cannot yet afford to feed themselves.
4. Job Placement for those who already have the necessary skills to get a job.
5. Technical learning center for those who need to learn a skill to seek employment.
6. Housing assistance for those who have a good job and are saving for their own home.
7. A free clinic for those in need of medical assistance.