If true, which I have no information on, then this screams to me for the need for everyone to have to have an identity card. One that is impossible to fake, be full of the latest technology and only available at recognised, government approved centres.
Getting many of those currently living on benefits back into the labour market has long been a bone of contention for me. Most can do something, so they should. I have had tenants quite happy to have their rent paid for them, enough provided for heat, cooking and water and accepting charity for clothes, furniture and food. Then they sit playing video games all day on a huge TV, surrounded by their mates and cans of beer. All, by the way, as British born as me!