In our civilized societies we are rich. Why then are the many poor? Why this painful drudgery for the masses? Why, even to the best-paid workman, this uncertainty for the morrow, in the midst of all the wealth inherited from the past, and in spite of the powerful means of production, which could ensure comfort to all, in return for a few hours daily toil? - Peter Kropotkin (1892)
That "lifestyle" of near poverty.
I think you're missing OP's point. Those basics of shelter and food can easily be covered by society, in the modern age, with our understanding of science allowing agriculture to be a piece of piss now-a-days compared with how it used to be. We have machines that can do the labour of hundreds, thousands, of people. We have computers that allow for the tracking of a million and one data points.
Yes, people would have to work to provide someone with bread and water. But it's such a minimal amount of work in the grand scheme of things, that why should we really care? Those that work will live better lifestyles, will reap greater rewards. But why should those that don't work be left to starve and die when for such a tiny percentage of society's expenditure they can have their basic needs covered?
Perhaps, after a year of not working and recovering from the rat race, they may even see the value in working again. If it benefits their community, instead of having to work 40+ hours a week just to cover their basic requirements. Work can, and should, be far more flexible than it currently is. If our basic necessities are met then that allows for flexibility, it allows for labour to adapt as society's needs change over time.
It prevents exploitation, as you no longer need to work but want to work to improve your situation or that of your community.