[1]: http://en.wikipedia.org/wiki/Tithe#Mosaic_law: The third year was called "the year of tithing" (Deuteronomy 26:12-14) in which the Israelites set aside 1/10 of the increase of the land, they were to give this tithe to the Levites, strangers, orphans, and widows. These tithes were in reality more like taxes for the people of Israel and were mandatory, not optional giving. This tithe was distributed locally "within thy gates" (Deuteronomy 14:28) to support the Levites and assist the poor.
[2]: http://en.wikipedia.org/wiki/Welfare#History: In the Roman Empire, the first emperor Augustus provided the 'congiaria' or corn dole for citizens who could not afford to buy food. Social welfare was enlarged by the Emperor Trajan.Trajan's program brought acclaim from many, including Pliny the Younger. The Song dynasty government (c.1000AD in China) supported multiple programs which could be classified as social welfare, including the establishment of retirement homes, public clinics, and paupers' graveyards. According to Robert Henry Nelson, "The medieval Roman Catholic Church operated a far-reaching and comprehensive welfare system for the poor..."
Churches, professions (benevolent funds), and clubs (as in masons) looked first after their own, and their children, when they fell on hard times. That was what they were for. That was why they were so vital in society.
You remember in Oliver Twist, where child orphans not lucky enough to descend for a professional are put to work as pseudo slaves in a workhouse? You remember when they escape to work as thieves and probably prostitutes for an older gangmaster? Not in your production of the show?
Anyway, that's what a small state, and charity driven welfare looked like.