While you think it might be terrible a modern incarnation probably isn't a bad shout. Perhaps people who are unemployed can receive some form of JSA linked to contributions for the first 6 months and then if they want handouts beyond that or if they've not contributed sufficient NI in the first place then they can work for their JSA payments by carrying out community service somewhere within their region - this only need be part time in order to match the standard JSA payment so still plenty of time left over for them to get a proper job and perhaps more motivation for them to do so too.
If we could make a valued contribution for people on JSA I don't have a problem with that, however the cost of running and administration need to not outstrip the value.
JSA is something like 0.7% of Government annual spend or 2.9% of the Department for Work and Pensions spend, still if you can make it work, every little helps...
