I understand the argument that very wealthy people may not need the financial support. The difficulty is deciding where the cut-off should be. Is it based on income, savings, investments, property value, pension wealth, household income, or a combination of all of them? Someone may live in a £1 million house but have very little disposable income, whilst someone else may have substantial investments but a modest home. Any means test creates cliff edges where people just above the threshold receive nothing and people just below receive everything.
PIP was created as a contribution towards the extra costs of living with a disability, not as an income replacement benefit. The principle is that two people with the same functional limitations face similar additional costs, regardless of their earnings or savings.
Is a millionaire with severe disabilities less disabled than someone on a low income? If not, why should one qualify for support with disability-related costs and not the other?
That doesn't mean means-testing is wrong, but it shows the debate is really about whether disability benefits should compensate for disability itself or only provide financial support to those with lower means. And PIP was originally conceived to try cover some of the costs of a disability.
Personally, I think the strongest challenge to the means-testing argument is asking where the threshold would be:
£50,000 savings?
£100,000?
£250,000?
£1 million?
Household income of £60,000? £100,000?
There is no obvious answer, and wherever the line is drawn, somebody will argue it is unfair.
We can say this about most benefits and that the purpose needs to be reviewed i.e. I have a lovely made who was widowed young and she gets an admittedly outdated widows benefit now, to help offset the loss of her late husbands income and it will cease when she hits retirement or she marries. She has lived with her partner for 20yrs without marrying because she does not want to lose the benefit. Is that right?
I don't disagree that there are issues with our benefit system but where the line is drawn is very contentious.