Sometimes people refer to things like this as “unintended consequences”. I think they are intended by those in power who wish to grow the state.
Keeping poor people reliant on the state keeps poor people voting to expand the states’ power (as the state keeps others from helping); the more services people get from the state, the more power a small number of people keep.
This creates a culture of subjects, not citizens. And that’s the goal; and it’s more important to reach that goal than to help people who need it.