I think the basic assumption is "you need help, and we are willing to help you".
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.
It's presumptive that any problem you might have could possibly be solved by a state paid "life coach." I'm sure there's a segment of the population that could use this, but likewise, I'm sure there's a segment of the population that's facing unique enough circumstances that a "life coach" would come off as a slap in the face.