Means Testing

Means testing is a process of assessing whether an individual or family is in need of public assistance. The process literally aims to evaluate whether a person has enough “means” to support himself or herself. Usually, means testing is done in order to target the limited public resources so that most needy citizens are reached. Means testing has proved to be an important tool when claimants’ eligibility for government social assistance is determined and for assessing the level of benefits to which one is entitled. A successful targeting ensures efficient use of public funds as well as increased welfare of citizens.

Historically, means testing is associated with the implementation of the poor laws in Great Britain. The process was later adopted in other parts of Europe ...