Means testing
Another day brings us another nimble U-turn from the “Coalition of the Willing (to be just as bad as Labour)”. In opposition, everyone was vehemently against Labour’s plans to means test benefits that are currently universal. Now that the Tories are in power, they’re suddenly calling for universal benefits to be means tested. The Liberal Democrats have never been in favour of means testing and now they’re in power, they suddenly are.
People of a socialist inclination are suddenly outraged by this (and so is anyone who is expecting any kind of consistency from the government.) Of course, I find curious that left-wing voters were not up in arms when their team proposed this, but in my opinion, anyone who is dim enough to vote for socialism is dim enough to swallow any line peddled by the government.
In a nutshell, universal benefits are simpler (and therefore more cost-effective) to implement. Since they are universal, they are not likely to put people in a position where going to work will be discouraged by withdrawal of benefits. They don’t require a massive state infrastructure to manage and they are not subject to people who have “brilliant ideas” for “making it work better”.
But I suspect the real story here is not the faux outrage peddled by the left, nor is the real story here that middle-class people who fund or have funded so much government waste are going to lose their wafer-thin slice of the welfare pie.
The real story here is who truly benefits from making previously universal benefits, means tested. The real story here is which organisation is powerful enough to sway the government, who have had very clear policies about universal benefits, and was powerful enough to sway the previous government away from universal benefits, which were almost imprinted in its DNA.
This powerful, shadowy and increasingly blatantly “in charge” organisation is the ironically named “Civil Service”, of course. Increasingly arrogant and uncivil, hectoring and bossy and of course, in no way serving the public (although they could certainly be seen as servicing the public!)
It is a tautology that powerful vested interests will form in a “corporatist” society, a society where there is an unholy alliance of hidden, unelected “autonomous” bodies that drive civic life and political parties that are dependent on big business or wealth for their continued success.
This means that a relatively small number of people will have to interact to decide on “how things will be done”, something easily done through “workshops” or “events” or even “dinners”.
Heavily regulated big business is always campaigning with exactly the right people to bend regulation that might actually help people into regulation that makes it more difficult for competition , the only thing that will really keep them honest (and also ensure that the implementers get it “right”.) Politicians are always dealing with exactly the right people to extract funding from to keep them in office or just one step away from it, while ensuring that their “on the same page” as the people who actually make things happen. And of course, quangocrats and bureaucrats are continually supplied with ideas that they can implement to increase the size and scope of their empires.
It’s what you might call “win-win-win”.
Of course, there has to be a loser somewhere.
Have you worked out who it is yet?
- August 21, 2010 at 21:13
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If you feel a certain soreness (the result of friction?) about a certain
part of your body – yes it is!
Just like the rest of us, you’ve been
royally screwed!
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August 21, 2010 at 00:28
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Is it me?
- August 20, 2010 at 17:48
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Change to a negative income tax for all with the reduction set at something
between 40 and 50%. Link the maximum payout to the minimum wage and abolish
all other handouts. That would be a much simpler and cost several orders of
magnitude less to administer and help cut the size of the civil service all in
one step.
- August 20, 2010 at 15:02
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- August 20, 2010 at 13:08
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Unfortunate, during the period when I could have been saving for a Private
Pension, I was too involved with paying for a decent education for my
children.
But all I ever hoped for was a reasonable Pension for which I didn’t need
to be means tested. I did pay for many years for such a thing.
- August 20, 2010 at 08:50
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Many years ago I started contributing to a savings plan. It didn’t cost
very much, about one pound per day, the sort of amount some people spend on
coffee or smoking.
Last month the plan payed out. The result? Well I expect it will exclude me
from any form of means-tested benefit. Seems a bit ‘mean’ to me.
- August 20,
2010 at 08:22
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It’s the same person it always is, isn’t it?
- August 20, 2010 at 07:51
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The State Pension has been means tested for a number of years now, which I
find particularly offensive. If The Pension was adequate then there would be
no need for means testing. Those who don’t rely solely on a State Pension are
subject to Income Tax anyway.
But I do agree that other standard benefits should be subject to means
testing on a standard income, presuming that the standard income is
reasonable.
However, one might wonder what The Government consider to be
reasonable.
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