Basic assumption is, we know you need coaching, you probably won't take it, so we will bribe you with basic necessities.
It might work or might not, but it's patronizing for sure.
I guess it all comes down to what "life coaching" means in this context. If we are talking about some sort of social assistants that will understand what ails the people in need and help them find a way around their issues (e.g.: navigate state bureaucracy, acquiring some basic qualification, find help with rehabilitation, etc) I see no downside.
Instead of seeing this as patronizing, I actually see it as quite humane.