I can't listen to the video as Mr D is watching TV, but I agree that it is very wrong that people are not able to work their way out of poverty. Wages are kept low by allowing employers to pay very little and their workers getting it made up with benefits, although I don't think that this was happening in the 1960s. That is bad for the taxpayer, and bad for the employees, who become dependent on the state, and have to report everything they earn in order to claim the benefits, which would stop if they earned above the means-tested threshold.
There seems to be a race to the bottom in the UK. Means tests will always hold people back - whether those in the 'gig economy', those earning over £100k who lose out on help with childcare, or those in between who don't get child benefit because they earn above a threshold, so they lose their autonomy in so many ways.
Those who save or earn 'too much' are discouraged from trying to improve their lot, as they know that concessions of various types will be lost if they manage it. Meanwhile, many people don't pay tax, but still use the facilities it pays for.
We really need to reconsider the whole system to make it fairer to everyone. I would like to see a fully contributory tax system, an increase in the living wage, no 'top ups' that can make people better off working part time whilst others have to work overtime to get by, and an end to means tests.