Does British social policy favour the feckless and irresponsible?

 

I would've thought that it was pretty obvious that British government welfare policy penalises those people who have been frugal and industrious and have saved money and own their own home. This is because of something called means-testing.

If you have capital and assets worth more than £23,250, and you have to go into social care, you will have to fund all your own care costs which can be up to a £1000 per week. You will not get any help with your care cost from the local authorities and you will be paying higher care fees to subsidise those residents who are being supported by the council. People have lost their homes to pay for the exorbitant cost of their personal care. Their life savings are now going into the pockets of venture capitalists and private equity firms that now own and run care homes.

Pensioners no longer get the free TV license when over 75 or the winter fuel allowance, unless they're on Pension Credit. Rent and council tax support are all means-tested. Means-testing creates perverse incentives. What's the point of saving money if it's just going to be taken all off you in your old age? Means-testing favours the feckless and the irresponsible. You might be better off in the long-run If you pissed all your money up against the wall or went on world cruises.

If you're looking for an affordable home to rent you may be refused rented housing by registered social landlord if you have too much money. They can tell you to rent privately which is more expensive and less secure.

There are those who want to means-test the UK state retirement pension, so there’s even less incentive to save money.