Goods and services only, no cash value is the way to go. Based on family size and makeup, a standard grocery package including toilet paper and other necessities should be issued. No cash.
And no junk food. Used to be that way. You got 20 quarts of dry milk, 5 lbs of cheese, peanut butter, flour, sugar, canned goods. More like the WIC program.
You are right people have to have TP, bar soap, laundry soap, toothpaste, basic hygiene stuff. Clothing can be taken care of via voucher for specific necessary items. No designer stuff. You want better get off your backside and GET A JOB.
Quit rewarding them for having more kids.