This seems like an intuitive outcome.

Austrians have been saying for years that State calculation to achieve desired economic outcomes is doomed to failure ( https://en.m.wikipedia.org/wiki/Economic_calculation_problem). This just seems like a special case of that.

Of course, I'd personally like to see this taken further, and see a) welfare programs in kind in general replaced with cash, and then b) taxpayer funding of same replaced by charitable giving (quite the opposite to the UBI folks, and motivated by quite a different morality). This feels like quite a viable transition to me.