Report

Saving penalties

This report from UK think tank the Resolution Foundation looks at reforming the capital rules in universal credit.

Means-tested benefits in Britain are built on the principle that individuals with significant financial resources should use those before turning to the state for help.

That’s why wealth – as well as income – is assessed when determining eligibility and entitlement levels for means-tested support.

But while income means-testing has been widely studied and debated, capital means-testing has received far less attention. As the Government begins a review of universal credit, now is the time to assess whether these rules are fit for purpose.