Welfare to Work or Workfare as it's popularly known is when someone works for free in order to get their benefit. The company that benefits from the workfare through free labour does not pay anything towards the claimant. In fact they often get paid for taking someone on. They benefit from their labour and give nothing back. It's often the case that workfare is used as a way to interview someone. Get them for a few weeks of workfare then decide whether you want to employ them. The only income a claimant receives is their benefit which is paid for by general taxation (or more properly through the national insurance scheme).