> they will also include the money that a household would need to take a one-week vacation.
Pretty standard (Western) Europe welfare model afaik. Here in the Netherlands it's called 'vacation money', and if you don't have a job and can show you're applying for one, you'll get a minimum wage income and vacation money is indeed included in that as a bonus once a year.
> the poor are human beings and should not be demonized for having the niceties
Absolutely, but you mentioned the UK. I visited the Emmaus centre in Cambridge a few years ago, all the lads there (ex homeless often for more than a decade) told me to never give money because buying alcohol isn't just 'nice', it's a disease that destroys people and there are alternative solutions. They all lived that life.
I'm not going to say 'don't give', but if you somehow know for certain it's spent on alcohol, I definitely would say don't give. At least, taking it from ex homeless guys who still struggle with alcoholism and the life they live now at Emmaus.
Perhaps it's different in various shitholes in the world where there is nothing to rely on, I can imagine alcohol being a sensible temporary relief, but in cities with capacity for homelessness issues, it's not a good choice. And if you look at Europe for example, you'll find that e.g. the Council of Europe has ruled various times now that not just citizens, but also refugees, all of them, without fail, are to be provided a minimum of shelter, food and clothes.
Not saying it's a perfect situation, far from it, and sadly professional homelessness relief still relies way too heavily on charity and voluntarism, but in many cities giving money for alcohol is simple not the best thing to do at best, and harmful at worst.