Benefits in Kind are government policies to help improve the living standards of underprivileged groups without the use of cash benefits.
Examples of Benefits in Kind
- Free TV licenses for those aged over 80
- Free Prescriptions for those on income support
- Free higher education.
The argument is that if low income groups were given cash benefits, the money may not be used for essential services such as above. By giving benefits in kind means that people will always have access to treatment
The drawbacks is that if services are without cost it may cause overconsumption. However, this is rare for the services mentioned above.