No, it doesn't work. It constitutes a perversion of the market economy. Prices are set by supply and demand. If everyone has an extra $1,000 to spend per month, especially the poor people, the prices for those items will increase accordingly. In other words, if the poorest demographics have as of tomorrow another $1,000 to spend per month then those who sell them goods and services will increase those prices accordingly. Simple market forces at work.
If you really want to improve the society's living standards, you need to invest in education instead of giving away free money. Education is the real solution to poverty and healthcare.