Welfare benefits for those with no income should be based on flat rate universal entitlements.
The problem of once better-off workers falling on hard times when they lose their jobs should be dealt with differently. While in work, a proportion of salary should be held in compulsory savings, which becomes available to supplement other benefits in the event of unemployment, sickness or old age. (Sums left in the pot on death would be inheritable).
Some may argue, not without justification, that British salaries are not enough to sustain compulsory savings. That is an argument for higher salaries which would make it possible for people to sustain themselves throughout their working lives.