>which is arguably quite an effective way to distribute limited resources to the public.

I would argue in a lot of cases it isn't: especially in cases where the resources are intended to go to people who are struggling in some way. People who need the most help are often the least equipped to deal with the bureaucracy, while someone who is exploiting the system can happily jump through as many hoops as it puts up (especially when they're arbitrary rules that are encouraged to be applied without critical thinking and have very little correlation with the thing that is supposed to be being assessed). It might limit the number of people using it but it selects opposite to the desired result.