Most agree that those who can afford it should pay towards some public services and that the welfare system should be ’a hand up not a hand out’.

But government has been wrestling for years with the thorny issue of how you introduce a fair and consistent means-testing system that is not too costly to administer.

Now the Cabinet Office has moved one, albeit small, step forward, with the launch of a consultation on a ’high level policy’ on means testing.

Policy and Reform Minister Chris Thomas MHK, who chairs the social policy and children’s sub-committee of the Council of Ministers, said: ’This is a massively important topic, but we have to be realistic about the delivery timescale.

’In one sense this consultation is only the next step in a process, but the policy and principles in it if agreed can be instrumental and transformative.’

The general principle behind the proposals is that government recognises that public services should be directed towards those who need them most in the context of a sustainable level of public finance.

The document states a ’one size fits all’ system for means testing is not proposed and instead generally agreed principles should be applied across public provision and social security.

This should be a step-by-step transition rather than a ’big bang reform’, it proposes.

Means testing calculation would be done by the Treasury in the medium to long term.

As means testing can be potentially complex, assessments should be as simple as possible.

Clear and understandable criteria need be drawn up and there should be a statutory right to appeal a decision.

There should be a standard list of incomes, capital assets, additions and deductions used for means testing and there should be one application process where relevant information is provided.

The consultation document proposes the income of up to two adults, in a relationship, sharing an address should be the standard measure for determining means.

Cash payments will be assessed more regularly than eligibility for free or discounted services.

Card-based technology would allow a phased withdrawal of benefits as incomes rise, allowing ’cliff edges’ to be avoided.

Households would be banded at levels of discount to standard charges ranging from 0 to 100 per cent.

Following the consultation, more detailed means testing policies will be drawn up by the CoMin sub-committee. The consultation is available on the government website. Responses should be sent by August 18 to [email protected]