SOCIAL SECURITY BENEFITS

Press, Volume LXXXI, Issue 24711, 31 October 1945, Page 6

SOCIAL SECURITY BENEFITS

—, —» UPWARD TREND OF COSTS ANALYSIS OF FIGURES ,The increases in social security monetary benefit's from October 1 will affect more than 162.000 persons. In July, social security benefits, excluding family allowances ' which numbered 26.227, Were received by 162,022 persons, or 10.2 per cent, of the total population, estimated at 1,664,585. The number of age beneficiaries, who are now receiving £2 a week, against £1 12s 6d, has increased from 49,289 in March, 1944, to 105,379 in July last. The annual value was then £8,751,726,which has been increased to nearly £11,000,000 by the extra benefit. Before the old age pension was included in the Social Security Act in • 1938, the value was £1 weekly. The claimants of the old age pension numbered 59,100 but in the first year of social security, at £1 10s weekly, the number of age beneficiaries jumped to 93,262, the cost then being £6,517,000 annually. When the first payments of universal superannuation were made in 1940, the claimants totalled 36,602. The number in force last July was 55,185. This benefit, now £22 10s, will increase by £2 10s yearly until the maximum of £lO4 is reached in 1979; the original scheme provided for a maximum ,of £B4 10s to be paid in 1970. Widows' benefits have not increased greatly in numbers. A total of 10,174 benefits were in' force in 1940, the annual value being £830,623, and 11,078 were operating in May, the annual value having risen to £1,024,181. Orphans' benefits numbered 330, of an annual, value of £16,743, in 1940, and in July they numbered 416, of a value of £21,798.

The only section in which the beneficiaries have fallen in number since social security was introduced was miners' benefits. In 1940. 988 were in force, the value being £90,179, and in July last the number had dropped to 758, of an annual value of £71,060. Little increase has occurred in the number of claimants for the invalidity benefit, which has been raised in value. The number of beneficiaries in 1940 was 11,811, and 12,151 were claiming in July last. The annual value had increased by £128,000 in six years, the annual value of the benefits in July being £1,086,208. " Family Allowances Family beneficiaries have more than doubled in numbers in the last six years, 26,227 being in existence in July, with a total annual value of £2,113,896. In his estimates, the British Government actuary, Mr G. H. Maddex, anticipated "that the future expenditure on these allowances is likely to decrease appreciably owing to the decline in the size of families." His estimates, however, were upset by the extensions of the benefits to the first child, the payment now being 10s a week, with in income limit of £5 10s, giving a man with three children earning that income a total income to-day of £6 6s 3d. A universal children's allowance, free of income limits, has now been adopted and wjll be paid as from April 1 next at the rate of 10s weekly for each child under 16 years. " ' The changed employment situation due to the war brought about an immense reduction in claims for the unemployment benefit. " In 1939-40,' the first year of operation, of the Social Security Act, the payments for/unemployment totalled £434,500, 4053 benefits being in force. The, number operating last July was only 254, and the total paid in the previous 12 months was £27,822. Increased payments are likely to be faced. The benefits, have been raised in value and Mr Maddex said: "However great the improvement in trade and increase in employment, there is always likely to be a small number of temporarily unemployed persons and a small 'hard core' of more or less permanently unemployed—short of their absorption by artificial means." The sickness benefit, estimated to cost £1,000,000 in its first year by Mr Maddex "after consultation with the Minister of Finance," cost only £208,790. The benefits were pruned heavily, the belief of the public, from early propaganda, that the benefit', of appropriate amounts" would be paid to all men and women during periods when they were prevented from earning a.livelihood by reason of siqkness or accident not being realised. This benefit operates under a "means test" and is limited only to where there is a loss of earning after the first week of sickness. Sick beneficiaries numbered 395? m July, their receipts totalling

Hospital Costs The hospital benefit in the year ended March 31 last amounted to £2 330,700. A sum of 9s a day is now paid hospitals. The pressure on hospital accommodation accentuated the problem even when 6s a day was paid. The original estimate was that this benefit would cost the fund £940,000 The number of beds in hospitals increased from 13,328 in 1937 to 16,613 in 1944, the number per thousand of population increasing from 8.4 to 10.2 The hospital provision is apparently the highest in the world, the other two countries having the highest number of beds being Norway, with rather more than 10 beds per 1000, and Australia, with eight beds per 1000. The cost of maintenance for each occupied bed has risen sharply, the Year Book for 1944 showing that costs have risen from £183.3 in 1935-36 to £310.3 in 1941-42.

Although the annual report of the Health Department states that New Zealand "has already, so far as is known, more hospital beds per 1000 of population than any other country," building programmes roughly estimated to cost £13,000,000 have been indicated for the next five years by hospital boards. Hospital rates have increased and when former service personnel are rehabilitated—the War Expenses account has paid the hospital bills in the last six yearsfurther charge on taxpayers is indicated.

The department reports, however, that "in view of the housing shortage, it is questionable if more than a fraction of the proposed orogramme of building will be accomplished."

"Disquieting" Situation When pharmaceutical benefits were first introduced, they were estimated to cost annually 7s a head of population. The Health Department recently reported:—"The cost of this benefit continues to increase and represents an expenditure of 12s 3d a head of the population." The department commented that a feature since the inception of the benefits was the marked increase in the actual number • of prescriptions, this being "very disquieting" because-of no apparent deterioration in general health and certainly without any increase in population. In the first full year of operation—--1942-43—the pharmaceutical benefit cost £563,247: in the last year it cost £980.237.

Fluctuations in the birth-rate have alone influenced figures for the maternity benefit, the Value of which has been unchanged. The cost in 194041 was £518.997 and in 1944-45 £530.734.

The supplementary medical bqnefits are at present confined to "radiological services, massage, nursing and specialists. The operation of the first two benefits in 1943-44 cost £137.835, and the amount spent last year was £170,035.

dore G. H Faulkner, D.S.C., the naval officer in charge at Auckland, Commodore W. K. D. Dowding, D.S.C., and by the New Zealand High Commissioner in London, Mr W, J. Jordan In addition to her own officers ana ship's company, the Gambia brought back about 100 offlcgrs and ratings who had served in other ships, or in aiew cases had been prisoners of war. Also on board was Commodore EvansLombe, chief of . staff to the Com-mander-in-Chief of the British Pacific Fleet, Admiral Sir Bruce Frase'r. Commodore Evans-Lombe is to discuss official business with the New Zealand Naval Board. Among the released prisoners of war was Lieutenant-Commander S. Polkinghpra, R.N.R., who did not know until he arrived that he had been awarded the Distinguished Service Cross for his gallant conduct in fighting the British gunboat Petrel against several Japanese warships of vastly superior strength in the Yangtse river in 1941, ,