Wouldn't it be cheaper for everyone if the Police just handed out £10
sets of lights and be done with the problem.

No, because then someone is being rewarded for breaking the law.
What happens is some places is that a cyclist is given a FPN for not
having lights, if the cyclist buys and fits lights within e.g. two
weeks, then the FPN is withdrawn.
I very much like that attitude.


I agree. Fining people isn't the point. Modifying the behaviour is the
objective.