Agree OP, and as it's such an important issue that affects all of society, but I'm tired today and unable to articulate as clearly as I'd like, I'm going to copy paste two posts I wrote on another thread (I'm relatively new posting on MN so hope that's ok regarding posting etiquette). First below, next in a follow-up post.
The false economy approach is a proven failure.
It's very clear now that an increasingly punitive benefits system achieves the opposite of reducing need (for benefits, or any other help).
Poverty and stress (often interlinked) both affect health. So people get sicker, or fall into deeper financial trouble, or need more help from other public services, and so are less able to move away from needing benefits.
So what's needed is a supportive benefits system, and also timely and effective access to good well-funded public services. NHS, social care, more social housing, improved child support system, good work education and training opportunities.
There's a need to invest to save. Costs money to invest but pays off by improving everyone's quality of life and saves money.