What is wrong with allowing charities to look after people?

Nothing that is the best way because it is willful helping and not forced upon the giver. It does two things, it helps the people that need it and it makes the people helping feel good about themselves and grateful for what they have accomplished. When you force people to help they resent that, and the people getting the taxpayers dime feel like leeches and worthless. Charity should be a helping hand, not a prop to reward bad behavior.