If we condition our reasoning on the proposition that nobody can efficiently provide goods to poor people cheaply, then yes, I would at least claim the Proper Move (which is not necessarily easy from our status quo position) is to have certain things provided as a public service.

On the second hand, if we're already talking about instituting such a thing as a Basic Income Guarantee, then it makes good sense to do so and then remove subsidies for "sub-living efficiency" businesses. After all, with a correctly configured Basic Income, possibly plus even a small income from real business (which will be easier to come by due to the demand/money-velocity boost), even those at the lower end of the income scale should have the purchasing power to start buying, at the very least, frugal goods instead of cheap goods.