I think a voucher system would be an idea, but adminisrating such a scheme would have its costs.
I've just got a new job after 4 months on the dole, the thing that grinds my gears is that after 3 months my housing benefit got dropped leaving me with a short fall of about 70 quid. And then you get scutters that somehow manage to run a car and have sky, that have no intention of ever working.
I would never have sky anyway, as I have better things to spend money on, but it does make me angry.
I think what makes most people angry is not the benefits itself, what you just said is a good point. Assuming you work 40 hours a week and are unfortunate enough to make minimum wage it doesn't matter, you don't get squat, so you have to pay everything yourself and still work hard 5 days a week. While these scoundrels get £500-600 towards their rent + £320 from JSA for doing nothing, so they basically make more money then someone who works 40 hours a week ,add a child into the picture and it just becomes ridiculous.
I think they either need to cut benefits or encourage people to work if they don't want to slash benefits. Because right now the problem is, these people might be scoundrels but they would be mugs to go to work where they'd make less money.