Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/65963
Authors: 
Hancock, Ruth
Pudney, Stephen
Year of Publication: 
2010
Series/Report no.: 
ISER Working Paper Series 2010-35
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.
Subjects: 
disability benefit
older people
welfare reform
disability costs
income measurement
JEL: 
H55
I32
Document Type: 
Working Paper

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