Over the last few years the UK government (and other governments around the world) have pledged to try and reduce the massive cost of the UK benefits system which has spiralled out of all control to somewhere in the region of £120 billion a year. While the authorities have taken a number of courses of action they seem to been depending up a system whereby claimants are “means” tested to see what assets and income they already have, where upon their claim may be reduced. But is the means testing system counter productive?

As taxes continue to rise, employment prospects get a little bleaker and the UK economy looks set to take a breather at best many people are being drawn into the world of benefits. While there are many who will agree that the means testing system awards those who need funds most with a larger slice of the benefits pie, many people are now wondering why they are being penalised for being successful . This has prompted a wave of “give aways” whereby those of older years are looking to pass on their asset to their family and friends while they are alive in the knowledge that they will lose these assets any way in the event that they need extra medical care or indeed move into a care home for the elderly.

This passing of assets is covered under strict government rules but there are ways and means of doing it, thereby ensuring that the person giving the gifts will receive full assistance from the state in later life. There are many who would rather not go down this route, the millions who have paid taxes and feel that this is the only way to protect their family’s inheritance. We have all seen stories of families being forced to sell homes and spend savings to cover care which many believe the state should provide.

In many ways it seems that those who are proactive and create their own income are the ones who are bring penalised and those who may not have had employment for some time are benefitting most. Obviously there are occasions where a claimant is unable to take up regular employment or may need extra assistance in some way, but there is no way that the millions who are claiming a whole host of benefits on offer are all unable to work.