What kind of payments may exclude individuals with higher income from receiving specific benefits?

Means-tested payments are designed to target financial assistance based on an individual's income level. This type of payment assesses the recipient's need, meaning that individuals with higher incomes may not qualify for these benefits. The rationale behind means testing is to allocate government resources efficiently, ensuring that aid is directed towards individuals who genuinely require assistance, rather than those who might not need it due to sufficient financial capability.

In contrast, universal payments are given to all eligible individuals regardless of income, tax credits generally reduce tax liabilities irrespective of income levels, and government grants can vary widely in their requirements but often do not directly exclude based on income unless they are specifically designed to be means-tested. This distinction highlights the primary purpose and selective nature of means-tested payments, making them effective in addressing issues of economic disparities and targeting those most in need.