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Generally, welfare is money gifted to people from a common fund. Usually this is performed using taxes, which is convenient but naturally inefficient and lending itself to corruption.

General money flow

In well-developed countries money is more or less given out to everybody willing. This is done to facilitate recovery from a failure to work, and to avoid moneyless humans, who are still allowed to live in cities while not being able to pay the rent, extracting money from society otherwise.

Money then, in best case scenario, flows to housing and food providers. If there is a surplus, money is spend on entertainment industry, which explains its skyrocketing profits.

Government reinforcement loop

While basically being supported by other people, welfare receivers still can vote on government actions, which include welfare. Naturally, they will vote for more welfare, while not supporting government themselves.

Universal Basic Income

Universal basic income is a nonsensical idea: if everybody gets the same amount of money, this money is worth nothing. If UBI is indexed, system enters a feedback loop state and inflation grows.

Sensible welfare

Multiple competing funds that provide welfare in different forms. People can choose one they want to give to and watch its operations. Welfare-seekers can apply to any welfare fund they like and are eligible. Funds will be stimulated to be open and don't waste money, as people who achieved welfare goals are their portfolio.

Adjustments to government welfare

Government can still act as a giant welfare fund, assuming a healthy control from citizens. However, reinforcement loop described above must be eliminated: welfare recipients waive all rights to participation in government.

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