I still think that all benefits should be given in the form of coupons in a rationbook. A set amount for food with categories such as veg, fruit and frozen goods, plus a set amount for any bills/housing etc and then NOTHING for alchohol, cigarettes or luxury electronics.
If you want a TV, you should have to apply to the council for one, and same with a computer, and neither should cost more than £100 each, and if you are addicted to cigarettes, you are entitled to free nicotine patches to wean you off for a period of 3 months only. End of.
That would be a simple system, albeit not perfect, I'm sure some feckless idiots would start up a black market, but at least it might stop others from blowing it all on booze, fags and flat screens. And believe me, it happens a lot more than some middle class dreamers care to imagine it does.