Is giving free meals at school to kids of poor parents improving education, or giving them a handout?
Overall, giving people handouts separate from a context of providing them a "help out," is both wasteful and unproductive, but the line between the two isn't always clear.
My experience, growing up in abject poverty, is that many poor people will gladly take whatever handouts you give them, and as long as this provides them a level of sustenance they are comfortable with (which is often quite low), they will develop no motivation to help themselves, or seek out "help outs" provided to them.
Essentially, the system should be more robust in terms of helping those who need it, but more selective and restrictive regarding those who will perpetually take advantage of it.