As the following article indicates Labour are planning means-testing for those on benefit. So what would this mean? Would an unemployed person have to sell their car to claim benefit? Sell their TV? How would they define 'Means'?



The benefits system is too complicated and there are too many incentives for claimants to stay on benefits long term, a think-tank has said.

The Institute for Public Policy Research (IPPR), which has 'close-links-to-the-government', says benefits should be streamlined into a single allowance.

Setting up a flat-rate system could cost up to £1bn but the IPPR says it would save money in the long term.

Ministers are due to publish proposals for reforming benefits next week.

In its report the IPPR called on the government to scrap jobseeker's allowance, incapacity benefit, income support and carer's allowance.

Flat-rate allowance

It said the complexity of the existing system caused difficulties for both claimants and officials.

It also said there are significant financial incentives for people to move onto long-term benefits like income support which gives them more money than jobseeker's allowance.

Under its proposals, the present array of benefits would be replaced by one, flat-rate allowance.

Instead of being labelled "disabled", "lone parent" or "unemployed", a claimant's entitlement would be based on their out-of-work status.


The benefits system Peter Hain has inherited is too complex to be effective
Kate Stanley, IPPR

Individual circumstances would still determine their package of support and the benefit would come with conditions, the report said.

The proposed system would guarantee anybody of working age out of a job would get a basic income for 12 weeks, without a medical assessment or means test.

After 12 weeks - by which time most jobseeker's allowance claimants have moved off benefits - the IPPR proposes a 'MEANS-TEST'.

Kate Stanley, head of social policy at the IPPR, said: "The benefits system Peter Hain has inherited is too complex to be effective."

She added the proposed system would allow people to start the process of getting back into work more quickly.

New Work and Pensions Secretary Peter Hain is expected to announce welfare reforms next week.

I know one thing. It would need more Paper Work, and more Civil Servants. And its a good job that the Conservatives have said they will get rid of it!

I'm curious about how Labour's proposed 'Means-Test' would work. How would it effect home/car owners etc. I think currently a person is allowed up to 3000 pounds in savings and are still able to claim benefit. However if a means-test is introduced what will be considered as the cut-off point? Will cars, homes, childrens savings accounts be taken into consideration? I can remember my grandmother saying how savage means-tests used to be, so I'm wondering if Labour are about to introduce something similar?