Ah no. Some benefits would become obsolete, The Netherlands already gives basic income to artists and people with work prohibiting disabilities for example. But

Ah no. Some benefits would become obsolete, The Netherlands already gives basic income to artists and people with work prohibiting disabilities for example. But it's obviously not a substitute for health insurance and other public health care systems. The idea is that it would reduce the expense on health care services because people would become ill less often. Whether this is true remains to be tested on a larger scale, but I think some research has pointed to this being the case. I think you are right, 500 euro would be extra spending money, not a basic income and quite possibly would have the reverse effect. It's why the basic income in Utrecht is 900, which is enough to live off as a single person.