Over here the government has tried to re-brand "the dole" as "Jobseekers Allowance" - After I left university I moved back into my parents and signed on for JSA for a couple of months, and I was using it as it was intended - to look for work. I needed that money to get to interviews, to pay for petrol, and buy food in the interim. I was pretty lucky that I only had to wait a couple of months before finding work, but I had no shame in the fact I was accepting help from the governement finding my feet. That's the system working.
However if it's possible to manipulate the system to live on that amount, there's obviously a problem. The solution shouldn't be "give them less", it should be to incentivise the support that you are given and to push people to find work in other ways. At some point you have to draw the line and say "Fuck it, this isn't working out, I need to find something else." Fortunately neither I, nor you, ended up in that position.
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