Means testing is not the answer imo. Taking the winter fuel allowance off higher rate taxpayers would save about £100 million, but then you would have to factor in the significant costs of administering the means testing for over 12.5 million pensioners, which would drastically reduce any savings.
The other thing to bear in mind with any means tested benefit is that many people who are entitled do not claim it. That may save the government some more money, but would defeat the object of getting the benefit to those who are most in need. Pension credit, for example, is means tested and official figures show that between 32% and 38% of those who are entitled do not claim it.
If a simple and fair way of getting the money off higher rate taxpayers can be achieved through the tax system then fair enough, but it is going to make a tiny impact on the deficit (just like with the benefit cap, which was given huge publicity but estimated savings are less than £300 million). It is a shame that such minimal areas of potential savings receive so much publicity whereas, for example, the many billions wasted on unnecessary nuclear weapons and lost to tax evasion, which could make a large impact on the deficit, are largely ignored.
As for means testing tv licences, the IFS figures for 09/10 show just over 4 million concessionary licences for "elderly people", costing £549 million. I cannot see any real savings being made from means testing that "benefit".
