I'm not sure exactly how the poverty line is calculated but I believe someone could live off of this tax free money for some time. Some Quick calculations.
Of $7204.00
$250.00 a month to rent a room: $3000.00 a year. You could probably find it for less too.
$50.00 week for food: $2600.00 dollars a year. There are also many food banks to make your weekly bill lower.
$25.00 a month for a landline with voicemail: $300.00 a year.
$50 dollars a month for a public transportation pass: $600.00 a year.
Total $6 500 dollars with a net savings of $704.00 a year. You have you basic needs covered in this scenario and all tools necessary to find a job. There are also many programs to help get free training and find work. Welfare is not meant to be comfortable. It is meant to keep one alive until he can find a job.
Maybe you can survive on that where you are. It's not remotely enough here in Alberta. I notice that you seem to think that utilities are free. That piddly amount you allocated for rent wouldn't begin to make a dent in electricity, natural gas, and water. Not to mention that you neglected to figure in GST and PST.
And are the food banks in your area free to anybody whenever they want? Here you're allowed to apply four times per year. You have to be seriously strapped for food, and you have to provide IDs for everybody in your household, even babies. It's an embarrassing, degrading experience, and I can't think that anybody would choose to go that route if they don't have to.
You can rent a room in Canada for $250 a month? My rent is very cheap for my area and it's over twice that. And I'm not in an expensive area either.
It won't be a nice room in a nice neighborhood but it will keep the snow off your head. No one wants to rob a poor person either.
No, you can't rent a room for $250 -- you might be able to rent a condemned dump. A recent article about "affordable housing" in Vancouver recounted how the homeless people were moved into a mice-infested building; they had a cleaner existence on the street, in some cases.
I know that if I were to rent somebody a room in my house, I'd be charging more than $250.
BTW, plenty of poor people get robbed. They get beaten, and left to live or die in the parks or alleys. It's a freaky thing for a mother and her children to find a beaten, half-dead homeless person sprawled in a park shelter. And many of these happen in broad daylight, less than a couple of blocks from the police station.