I really believe there may be a third option. A flanking maneuver. Grow the economy such that welfare isn't profitable. It can be done with cheap energy easing business obstacles.
The only way to educate these people now is OJT.
Whether it's done by lowering benefits, or by raising the salaries of entry-level jobs, the advantage of welfare over work needs to be eliminated.
If the economy improves, you will see similar screaming over "disparities", and calls for welfare benefits to be raised, as you would see if benefits were lowered.