Michael Tanner asks a good question here - Why Is There So Much Government Hostility to Private Charity?
The evidence suggests that private charity is simply more effective than traditional welfare at both providing for people’s immediate material needs and dealing with the barriers to their moving up the economic ladder. Why, then, is there so much government hostility to the practice? One might simply conclude that “bureaucrats will be bureaucrats.” The enforcers of rules and regulations soon come to believe that, in the absence of those rules, society would collapse — that the rules were disregarded, even for a good cause, we might soon come to question the need for them altogether. But there is also a troubling skepticism toward the very idea of charity among some progressives.
Ultimately, it's all about control. Progressive bureaucrats want to control literally every aspect possible of your life, believing they know better than you. What you eat, what you wear, what you drive, where you live, where you work, what you watch, what you listen to, how you play, what kind of medical care you receive, what you can say .... and even how to "properly" think (like them.)
More importantly, they want to "save" you from what they regard as delusional out-dated beliefs (primarily Christianity) that are seriously detrimental to both you and society, and usher you into Utopia. The problem is that their vision of "Utopia" becomes literally hell-on-earth.
It is better to take refuge in the Lord than to trust in man (Ps 118:8, ESV)