Do you have any evidence that they did this because the government assisted them with their housing payments?
I'm not sure we have any idea of the real value of things these days, including what work is worth. Credit has distorted the system; just because someone who is work full-time (however many jobs that takes) can't pay the rent rate the market seems to be dictating doesn't mean someone stepping in to fill the gap is giving them a "handout".
It's not charity, it's account-settling.
Widespread homelessness is a bad look for any culture that likes to see itself as civilised.