>Well I would say that giving some to the undeserving (whilst making some effort to minimize that) is part of the cost of making sure that the deserving get it. Also spending a lot of money auditing people to make sure they are "deserving" might end being more than you save.
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>In the UK we have a benefit called Child Benefit (its not much) and you get it no matter how much money you have. So the admin cost is very low. Also it gives everybody in interest in paying for welfare because they all get a bit back. If your rich you stick in Percys trust fund and if you're poor you buy beer and cigarettes or subscribe to The Morning Star depending on your brain size.

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Nick, talking of child benefit, are you aware that you can easily claim some £520 in back tax for a little publicised child tax credit from 2002/3. Look at the HMRC link below - form 11CTC. Dead easy. Must be in by end Jan though, so hurry.

http://search2.hmrc.gov.uk/kbroker/hmrc/forms/viewform.jsp?formId=3282