Is it better to remain on government aid and dedicate oneself to worship in a European country, or to seek work with non-Muslims with the fear of temptation and distraction from acts of obedience?

If the government provides you with money because you are unemployed, and you are able to work, then it is not permissible for you to take this money, as the condition for its eligibility has not been met, and you must work. However, if you are eligible for the grant even if you are able to work, then you are not obliged to work for a living, but it is more virtuous for you to engage in a permissible work.