WORKERS’ INSURANCE

Dominion, Volume 38, Issue 4, 29 September 1944, Page 5

WORKERS’ INSURANCE

Proposed British Scheme RUGBY, September 27. The Government’s proposals regarding reforms in workmen’s compensation are contained in part II of the insurance plan, issued today as a White Paper. As part of the extension and recasting of the social insurance system, the Government proposes that provision for disablement or loss of life from industrial injury shall become a social service, administered as a separate scheme but under the Minister of Social Insurance. Benefits, instead of being related to the estimated loss of earning capacity, will be paid at fiat rates, with supplements for family responsibilities. The pension will not be affected by any subsequent earnings of the workman and, except in some cases of minor disability, will not be replaced by a lump sum payment. i The Government aims to pass the necessary legislation as soon as practicable' with a view to bringing it into operation at the same time as the general scheme of social insurance. Incapacity Rates. The rates proposed are: — Injury allowance for incapacity for the first 13 weeks: Single man or woman without dependants. 35/-; with adult dependant. 43/9. Married man, 43/9; married man and first child, 48/9. After thirteen weeks the injury allowance and pension rate for ICO per cent, disablement is for four classes, ranging between 40/- and 57/6. The pension if disabled aiyl unemployable is to be from 50/- to 67/6. The allowance after thirteen weeks and the pension for permanent disablement may be increased by an allowance up to 20/- a week where increased attendance on the workman is necessary owing to injury. In fatal, cases the pension for the widow of 50 years or over with dependent children or incapable of supporting herself is 30/-; others are 20/-, with 7/6 for the first child and 12/6 for an orphan child. One parent has a 20/- maximum, two parents a 30- maximum, and other dependant members of the family a 20/maximum. Cost Will Be High. The cost of the Government industrial scheme of pensions will be substantially higher than in the Beveridge report. Assuming the total cost of the benefits under the Government’s proposals to be £20,000,000, with a further three shillings for , administration, the Government is advised that the weekly contribution for men will be sixpence and for women fourpence. If the contribution is divided equally as proposed between employers and workers, these sums will be threepence and twopence, with half rates for boys and girls under 18. These contributions will provide five-sixths income of the fund, the other sixth being contributed by the Exchequer. The scheiiy) will cover, broadly speaking. all persons working under contracts of service or apprenticeship. Liability instead of being on the individual employer will be upon the central fund, out of which al) benefits both in disablement and fatal cases, and administrative charges; will be paid.