Before the 1834 Act, poverty was the responsibility of individual boroughs, so they were responsible for their own poor. Committees decided who was worthy. Reading records of those committees is fascinating. In the early nineteenth century there was something called the Speenhamland System, which gave people poor relief related to the price of bread. When prices were high, the ratepayers had to pay more, which they didn't like, but it meant they didn't have to raise wages. (Does this sound familiar?) However, the system was more localised and people could carry on working.
The workhouses had local overseers, but the system became much harsher (as has been described above) and was controlled by central government. It was the beginning of the benefit system we have today.