Having been in the unfortunate position of being stuck listening to a few loudmouthed bigots at work myself, I believe the full scenario they have invented involves both an idea that the government hands out free houses and other things on top of the dole, combined with the idea that “those people” are inherently different and don’t need or want as much, so they can be considered “rich” if they live in a house and have running water. Whereas the bigot of course considers themselves to be a different class of person who really should have been born into a rich family (maybe royalty) and considers themselves to be hard done by because they don’t have servants.