Universal coverage means that everyone within a certain category, i.e. over 65 or children, receives benefits without a means or needs test.

Targeting means that a needs test or means test is applied to determine eligibility. Benefits are limited only to those deemed eligible based on administrative criteria. During debates about Family Allowances Act of 1944, some such as Charlotte Whitton argued that services should be extended only to those are needy that it would be a waste to give cash grants to all. She thought that social utilities should be provided in the form of health care, schooling, low-cost housing, etc. rather than cash assistance. Others, such as March argued that allowance was to provide minimum requirements for shoes, and clothes for the child that without these basics how could the child be in a position to take advantage of the social utilities. As well, March pointed out that there must be some leeway for parents' to make decisions in the expenditures for their children.