It's pretty much the same in the Netherlands, given enough issues and after failing to get you back to work you basically land in a situation where the state pays for your existence though direct money and a lot of subsidies (ie when the stress of work cause a relapse in your drinking habits and it happened time and time again over the past 10 years).

It is thus very difficult to understand why there are homeless people. But I once went (with work) on a trip with a homeless person (this is a charity, you pay and homeless people take you one trip and talk about their lives). And indeed the people on the streets always have psychological issues. Extreme ADHD, abused as a child, depression but just a little bit to afraid to die to really end it. If they want help it is there, always. Homeless shelters, places to get a postal address for free to apply for subsidies and minimal social income etc. But some just go crazy while waiting or go crazy while sleeping with other people in one room. Or they walk barefoot in the winter until their feet are so rotten that they can't walk anymore, too afraid to get help because they believe help means they will be abused again or mind altered or something strange. Most of them are constantly afraid and not a danger to others, more like very shy animals afraid of other humans, so they retreat and suffer while their fear of death keeps them alive, just barely.

One woman we spoke to had her child murder her other child and she just started drinking. How can you help such a woman? So much pain.