I have a consistent record in opposing the extension
of means-testing caused by the erosion of universal benefits like the basic state pension
and disability benefits. I would like to see the introduction of the truly universal
concept of a Citizen’s Income. It consists of a guaranteed sum for every individual,
giving each person a subsistence income, is equal for men and women and is not conditional
on paid work.Had the link between the State retirement pension and earnings been
retained, a single pensioner would be £28.30 per week better off today. Although
pensioners will be benefiting from the £200 winter fuel allowance and free TV licences,
the State Retirement Pension is declining in value, pushing more and more elderly people
on to means-tested benefits and causing resentment because those hwo have a small private
pension or savings are scarcely better off. As a response to this the Government's
reaction has been to propose the introduction of further complexity, the pensioner credit
which will eventually see 65% of pensioners subject to means testing.
The aim is to integrate tax and benefits in such a way as to give all citizens the best
incentives to seek and engage in work without the poverty-trap of withdrawn benefits. At
the same time the risks of exploitation, either of individuals or public funds is
minimised and bureaucracy cut. A massive 10% of means-tested benefits paid out goes in
administration compared to only 1% for the state pension. Child Benefit was the product of
a similar process - converting child tax allowances, which benefited only those earning
enough to pay tax, into a payment for all children.
Families and low earners would benefit from these proposals more immediately, but all
citizens benefit from the increased security and, conversely, freedom offered by such a
scheme.