The administrative cost of income-related benefits is 7 per cent. of benefit expenditure. The administrative cost of all other benefits is 2.5 per cent. of benefit expenditure.
Does the right hon. Gentleman agree that, superficially, means-tested benefits are attractive because, from a Treasury point of view, globally, they cost less money? However, there is a trap within every means-tested benefit as there is no incentive for the individual to escape from that means test. Does he agree that, in the longer term, it would be good to phase out as many means-tested benefits as possible?