Personal accounts means-testing review

The government has committed to an investigation into the impact of means-testing benefits on the planned personal accounts.

Many have criticised the plan to auto-enrol people into a national pensions savings scheme while means testing exists, as those on low incomes who have saved for retirement could fail to benefit from doing so.

The government plans to investigate the balance that is needed between alleviating poverty and incentivising savings, taking into consideration cost constraints.