Perhaps, or perhaps they would resort to crime, shop lifting, drug dealing, mugging, burglaries...Such behaviour would cost business extra in terms of security costs. The taxpayer would require to pay more for extra Garda, courts services, prison services. Our towns and cities would be less attractive to visit, hitting retail trade and tourism.
We have plenty of those crimes already. The money saved on giving these people less dole could be diverted to the services you have mentioned.
In some regard, there is a lot to be said for providing those (tiny minority of welfare recipients) with a free house, TV, and enough to buy booze and fags, so they can scratch their This post will be deleted if not edited to remove bad language all day and not bother anyone else.
Next time you see a report of a 90 year old sleeping on a trolley in A&E be sure to remind yourself that it's okay that the scrounger around the corner gets better services from the state.