ADJUSTMENTS IN PENSIONS

Press, Volume XCIX, Issue 29263, 22 July 1960, Page 13

ADJUSTMENTS IN PENSIONS

Benefits Increased; Capital Bar Off [From Our Parliamentary Reporter] WELLINGTON, July 21. The abolition of capital disqualification for the assessment of benefits, an increase to £3 a week in the allowable income for all social security beneficiaries and an increase of 5s a week in universal superannuation to equate the benefit with the age benefit, were announced by the Minister of Finance (Mr Nordmeyer) in his Budget this evening. Mr Nordmeyer said benefits would continue for three months to the survivor of a married couple on the age benefit; the war veterans’ allowance would be extended to include servicemen from Commonwealth forces, and there would be provision for single universal superannuitants to apply for a supplementary amount of 10s a week.

Changes to be made in the legislation to become effective for war veterans on October 1 of this year and for social security benefits from October 12 announced by Mr Nordmeyer

were:— The present capital disqualification will be completely eliminated from the assessment of all benefits. The allowable income will be fixed at £3 a week for all social security benefits other than orphans* benefits, where an allowable Income of £1 a week will be provided for.

The allowable income will also be fixed at £3 a week for economic pensions and for war veterans’ allowances. Provision will be made tor the continuation of both benefits for three months to the survivor where either husband or wife in receipt of an age benefit dies. The war veterans’ allowance will be extended to cover all former servicemen who served in Commonwealth forces and who comply with the other conditions necessary to enable a New Zealand soldier to qualify. The residential qualification will be similar to that required for the age benefit.

Universal superannuation had been increased in two stages—to £3 a week on April 1, 1959. and to £4 a week on April 1 of this year, the Minister said. To equate the benefit with the rates of age benefits it would be increased by 5s a week from October 12.

One difficulty involved in universal superannuation was that with age and. other benefits a supplement of 10s a week was payable to single persons because the cost of living alone was likely to be more than half the cost of husband and wife living together. The supplement was at the discretion of the Social Security Commission, although it was almost invariably granted, the Minister said. It had been decided that the supplement might also be given to single persons on universal superannuation on application. The Government desired that the full concept of social security should be maintained, he said. The revenue of the Social Security Fund this year was estimated at £75.8 million. In addition, it would be necessary to transfer from the Consolidated Fund another £34.7 million. He gave as estimates of payments from the fund:— £m Administration expenses and emergency benefits .. .. .. 3.1 Medical, hospital, etc., benefits .. .. .. 21.2 Monetary benefits— Age 27.3 Family .. 30.9 Universal superannuation 19.9 Other .. .. .. 8.4 Total 110.8