Quote:
Originally Posted by jfman
I think the common sense solution is to do away with disability benefits as a top up. They should means test the lot as Universal Credit to ensure money is targeted at those most in need.
PIP mobility should end at 65. Over state pension age it should be State Pension plus Attendance Allowance ending the unfairness of a two tier system based on date of claim.
It’d save a fortune on bureaucracy as well and simplify the processes for applicants.
|
Means testing is the most expensive way to administer benefits and results in a low take up rate as people resent the Government asking such private questions eg half of pensioners entitled to Pension Credit don't claim it.
Means testing would also undermine the very reason why Attendance Allowance/Mobility Allowance/DLA/PIP was introduced in the first place, which is that nobody, whatever their means, should lose out on this help towards the extra costs of disability. This is why it's tax free and not means tested.
Contributory ESA is means tested to an extent. Blair introduced a means test where most people in receipt of a private/occupational pension had it taken into account if they were over a prescribed amount. Cameron introduced a system where those not in the support group could only claim it for a year before facing a means test.
There's also the question as to whether taking out insurance should be means tested at all. This is akin to saying that if a millionaire takes out home insurance and then gets burgled, s/he should not be able to claim as they can afford to replace the missing items themselves!
It wouldn't save as much as you think anyway. Short term, savings could be made as benefits are withdrawn, but then people would have to live off their savings. Once these reduced to £16,000, they would be back on benefits again. These means tested benefits would then also attract free prescriptions, free dental treatment, free eye tests and a voucher towards glasses, cold weather payments, Social Fund payments, reimbursement of travel costs to hospitals and prisons, free medical appliances eg wigs, fabric supports etc etc. It would be horrendously expensive to administer as the diminishing capital rule would need to be applied on top of all the other costs caused by means testing.
There is also a belief amongst politicians and the middle classes upwards that taxpayers are happy to support the welfare state because they get a little bit of what they pay in tax back in the form of non means tested benefits. If these were withdrawn, they might not be so keen to support the welfare state at all, which would be a disaster for poorer members of society.