What it means

A means test looks at a person's financial circumstances before deciding whether they can get a payment or service, and sometimes how much. Depending on the scheme, it may count a partner's income, savings and other resources too. A means-tested benefit is not necessarily limited to people who are out of work: someone with a low-paid job may also qualify. Each scheme has its own rules, so income alone does not tell you exactly what someone will get.

Example

Two households with otherwise similar circumstances apply for the same means-tested benefit. If one has more earnings or savings, it might receive less or not qualify. Their exact entitlements depend on that benefit's rules.

Why it matters

Means testing affects who gets support and how a rise in earnings or savings might change the amount they receive.

Also known as

means test

Related terms

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