I don't think there is a dilemma at all.
This man is a parasite , a common thief and a scumbag.
He has not considered his parents in any of this, he is depriving many of help and literally sticking 2 fingers up at everyone including you.
Shop him straight away , it can be done without any of your details being given and then keep quiet about it.
Would I do do it , too right I would , there are thousands really struggling to manage on benefits and this man is just taking the p*ss.
Don't keep agonising about it just -do it.