I have for a long time been a fan of replacing benefits with a UBI. The idea is that everyone is about as well off as they were before (not a cash injection, you adjust tax rates to balance it out), but they don't have to do the stupid things WINZ make them do.
This way you save money by downsizing WINZ, you provide a smaller core team that can support the people who want to be there. This gives people the dignity that Qiulae is talking about, without the cash injection that would get hoovered up like you're talking about.
You could, over time, reduce the age of eligibility to age 0 or even earlier (paid to the parents) to make one system that supports families as well.
Obviously the devil is in the detail, but I think this TOP (or rather Opportunity) plan has some basis in reality so long as there is a multi-pronged approach.