Tuesday, May 13, 2008

Means Testing (3)

"Means Testing" is assessing a person's income to decide whether they are poor enough to receive government benefit programmes. Most welfare programmes are means tested; you can only receive a benefit if your income is below a particular level. Sometimes a banding system is used so that the amount of benefit you receive is more closely related to the level of income you have. Some benefits, however, are universal benefits paid to individuals regardless of their income or wealth. The mix of universal and means tested benefits varies from country to country, and is often politically sensitive.

Is means testing the most effective way of redistributing wealth to the poor?

Is means testing more efficient approach than universal programs?

Will means testing help reduce corruption and fraud?

Are there ways to get around the potential problems of a dependency culture and means testing?

Is means testing better than universal access?

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