Assessing the distributional impact of reforms to disability benefits for older people in the UK: implications of alternative measures of income and disability costs

R Hancock, S Pudney

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Abstract

The UK Attendance Allowance (AA) and Disability Living Allowance (DLA) are non-means-tested benefits paid to many disabled people aged 65 + . They may also increase entitlements to means-tested benefits through the Severe Disability Premium (SDP). We investigate proposed reforms involving withdrawal of AA/DLA. Despite their present non-means-tested nature, we show that withdrawal would affect mainly low-income people, whose losses could be mitigated if SDP were retained at its current or a higher level. We also show the importance of the method of describing distributional impacts and that use of inappropriate income definitions in official reports has overstated recipients' capacity to absorb the loss of these benefits.
Original languageEnglish
Pages (from-to)232-257
Number of pages26
JournalAgeing and Society
Volume34
Issue number02
Early online date9 Oct 2012
DOIs
Publication statusPublished - Feb 2014

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