But who will evaluate the housing/care/food provided?
If everyone has a guaranteed room, you can be sure that the government will be quite happy to pay 10$ a month to Hovel Towers to provide them, although a much better room could be rended for 11$.
The same will be true for medical care and food - the cheapest provider will be picked. And the people relying on these services won't have the ability to work a few hours a month to afford something better - if they want an upgrade they have to the entire expense on their own.
On the other hand, giving them money and letting them make their own choices means that the providers still need to compete on both price and performance and upgrades are not an enormous cliff, just a slope.
There will be some people that spend all the money on alcohol and drugs, but that is their choice - just stop preventing them from commiting their slow suicide with charity.