Actually the welfare system is pretty extensive, but many people who need help are hesitant to use it. To quote of one of the guys in the article you linked: ''I could have used it, but I have too much pride,''. That quote sums up a good chunk of Japanese culture.

I'm definitely far from knowledgeable on the Japanese welfare system (though that article is from 1996) but at least health care and education seem really cheap (and mandatory). As for the livelihood assistance part of welfare, it seems mostly old people make use of it (since unemployment is so low 2.8% in Japan) - which would link to what glandium said in another post: increase in theft by elders.

https://www.japantimes.co.jp/opinion/2016/06/16/editorials/s...

I recall a ranking a few years back where Japan was the only country in the industrialized world whose welfare system ranked worse than America's.