Oh, interesting. I hadn’t heard of compulsory income management before. The SNAP/EBT program is a little different, in that it is just money for food, not bills and such. That sounds horrible.
In the US people on social security benefits just get money deposited in their bank accounts, but they do have to fill out a form each year saying where all of the money went and there are weird restrictions on how much you can have in savings/income without getting disqualified from your benefits. And you are supposed to even include free food picked up from the food bank in your “income.”
It’s called the benefits cliff- there is a point at which an additional $1 will lose you tens of thousands in medical, nutritional and housing benefits. It’s why the are rules about disabled people being allowed to work for less than minimum wage. It sounds cruel (and it is) but it’s to protect them from losing their health care and subsidized housing because they got a part time job making a couple hundred a week.
It’s designed to keep poor people poor and it’s absolutely evil.