Well, I would investigate negative income tax. I don't know what the current state of the UBI lobby looks like, but there are certainly flavors of UBI that are much more efficient at allocating funds where they are needed most. Negative income tax is just one flavor of the more nuanced strategies. I certainly don't think routing some percentage of money into the governments coffers just to pay out again to the same people paying it would be an attractive option, and that seems like what you're describing. I believe that is by far the least efficient model I've seen.

Personally, I think it's throwing money away without also addressing healthcare costs, including nutritional reform. Sugar is only cheap when you ignore the costs of obesity we all bear in increased premiums. This is the only way of which I can conceive to implement some form of cash relief without cutting into benefits.