Charitable donations are one way to redistribute from the green team to the red team. They help to alleviate the symptoms, but don't do much on the underlying causes.
The green team paying more taxes, to fund better support to the red team, is another way.
The German saying is something like "we don't need charity, we pay taxes for that", and I largely agree with them. Homeless charities should not be necessary because people should be housed and supported in it if necessary. Food banks should not be necessary because everyone should receive enough income to feed themselves and their family three healthy meals of their choice a day with the food bought at a supermarket like everybody else does. Fundraising for the NHS should not be necessary because it should receive enough funding. Though charity does have a role as well in e.g. providing things that aren't necessary for life but may be desirable to some e.g. certain youth activities (like Scouting for instance) and the likes.
But I did like paying those 4 people more money for the things they do for me. For too long the green team have got away with getting things on the cheap at the expense of the red team. It is going to take some inflation to sort that out.
The "race to the bottom" is certainly a problem, yes. While "entry level" jobs are and always will (and should) be a thing, such as ones you're really expecting to do while still living with your parents, e.g. an office junior or apprentice, people should be able to progress out of those jobs to a point where, as a bare minimum, two "full rate" minimum wage incomes (ideally one, but certainly two) in any role outside of that can easily afford to purchase and maintain a basic but safe home* **, to eat good food three times a day, to have a week's British holiday once a year and to be able to afford reasonable leisure activities. We were there in the 1980s, and we need to be again.
I also think the "gig economy" has a role. If Deliveroo was a thing when I was a student I'd certainly have done some of it on my pushbike to get fit while earning a few quid for an extra pint or train trip here or there, and students like the flexibility of zero hours bar work and such. But that sort of job isn't what people should be needing to do to try to support their family, it's more of a slightly more grown up paper round for a bit of extra money.
* An example of such a home is the vast swathes of 3-bed terraced housing found all over our cities.
** London always was skewed somewhat and it's likely that people there will need more support in the form of social housing. But that shouldn't be needed in say Liverpool which has tens if not hundreds of thousands of such houses available.