That article is a self confessed non story! - "His bill has no relaistic prospect of becoming law" Don't really get why they bothered writing it then!!
Surely they wouldn't do it with all the benefit money - just a percentage of it? Not that I think even that is ok but to do it with the whole amount would be insanity. People wouldn't even be able to pay 30p for the loo at a train station, go to a school fair or grab a drink on the way somewhere. It could never ever work.
I actually only know 2 people on benefits but, in my very limited experience, they're both extremely capable of managing their own finances.
One is a single person on fuck all jobseekers (without even hb because she bought a house before getting made redundant so isn't eligible for help there) and she drinks reasonably often. To do that she sometimes has to go without food but hell, so what, it's her money, her choice, who is she hurting?
The other is a single mum with 2 kids and she buys everything from carboots, markets and charity shops. She would be way worse off if she had to use a card to buy everything. Her children are wonderful and have everything they need. It would be insulting and demeaning to impose a system on their mum that implies that she wouldn't put their needs first unless forced to.
I know I have have those two examples to draw on but I see no luxury in a life on benefits as it is - why make it even worse?