Means-test

A means test is a determination of whether an individual or family is eligible for government assistance, based upon whether the individual or family possesses the means to do without that help.

In Canada means tests are used for student finance (for post-secondary education), legal aid, and "welfare" (direct transfer payments to individuals to combat poverty). They are not generally used for primary education and secondary education which are tax-funded. Means tests for public health insurance were once common but are now illegal, as the Canada Health Act of 1984 requires that all the provinces provide universal healthcare coverage to be eligible for subsidies from the federal government. Nor are means tests used for pensions and seniors' benefits, although there is a claw-back of Old Age Security payments for people making over $69,562 (in 2012). The Last Post Fund uses a means test on their estate and surviving widow to determine, if a deceased veteran is eligible for federal funding to subsidize their funeral.

Resentment over a means test was among the factors giving rise to the National Unemployed Workers' Movement in the United Kingdom. Today, means-tested benefits—meaning that entitlement is affected by the amount of income and savings—is a central feature of the benefit system. October 2006 saw the introduction of means testing as part of the determination of legal aid in a magistrates court. Similar ideas have been made by the Ministry of Justice for the higher Crown Court in November 2008 with a consultation paper proposing the introduction of Crown Court means-tested legal aid. As of 29 January 2009 the consultation is closed and awaiting a decision.

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